Russian bank VTB issued a digital bank guarantee to the telecommunications operator MTS through the Masterchain platform in the amount of 392 million rubles.
Masterchain is an interbank project using Russian cryptographic information security tools. Its development began in 2016 under the leadership of the Central Bank of Russia. fintech Association, Kiwi Bank, Sberbank, Alfa-Bank, Otkritie and Tinkoff Bank took part in the creation of the platform.
VTB issued a digital guarantee for the fulfillment of payment obligations to MTS PJSC in the amount of 392 million rubles. The transaction was made through the Masterchain platform in real time. VTB’s digital guarantee was signed with a reinforced qualified signature. MTS management accepted the document, notifying the bank about it.
Deputy President and Chairman of the Management Board of VTB Vadim Kulik said that the bank is working on the introduction of services that will simplify and accelerate interaction with customers. The transaction was carried out within the framework of the “Digital Bank Guarantee” program aimed at the development of digital products in the Russian Federation.
“We were among the first in Russia to adapt our technological systems to the Masterchain platform. Blockchain will speed up the receipt of guarantees by the beneficiary and simplify the document flow. Moreover, storing data in a distributed registry will reduce the risks of fraud with bank guarantees, ” Kulik commented.
Konstantin Savelyev, Senior Vice President of VTB Bank, said that such a transaction through blockchain indicates the bank’s readiness to develop digital products in Russia. Savelyev is sure that soon The masterchain will become a single digital space for transmitting and storing documentation. In turn, the director of the Department of Corporate Finance and Treasury of MTS Alexander Smirnov said that the operator is ready to use the latest technologies, and the Masterchain solution has many advantages. The masterchain will allow storing information in a single system about all issued bank guarantees issued to the MTS Group.
“Masterchain will significantly accelerate the issuance and receipt of bank guarantees, reduce administrative costs and increase competition among banks. It is important that the entire process of work will be transparent and safe,” Smirnov said.
Tatyana Zharkova, General Director of the fintech Association, added that the Masterchain platform will create a new infrastructure for the financial market, with the help of which banks and organizations will be able to safely conclude transactions and exchange data. In the future, the system will be used by insurance and logistics companies. In addition, the Masterchain can be used for other types of transactions within the framework of trade finance.
Recall that at the beginning of last year, Absolut Bank also successfully conducted a deal to issue a digital bank guarantee on the Masterchain platform.