DDS - The decentralized depository system

The Decentralized Depository System (DDS) gives the chance to provide end-to-end business process of depository accounting of securities, allowing to reduce approximately by 80% labor input of depository operations and to reduce terms of transfer of the electronic mortgage by accounting and storage from several days to several minutes, developers claim.

The MasterChain platform developed at the initiative of Association of Financial Those (AFT), the first legally net in Russia which represents a blockchain network for transfer of digital values and information on them between participants forms a basis of DDS.

Implementing solution is intended to optimize client experience of borrowers: the traditional paper mortgage requires the personal appeal to the multifunction center and a repeated visit to bank for its transfer that thanks to DDS is performed remotely.

2019: Start of the decentralized depository system in commercial operation

On December 18, 2019 the Association of Financial those (AFT) announced TAdviser start in commercial operation of the decentralized depository system (DDS) on the platform the MasterChain for accounting of electronic mortgages. Sberbank and Market special depositary became the first participants of start, until the end of 2019 five more large Russian banks and depositaries will begin to use a system.

Start of DDS on the platform the MasterChain is an important stage of implementation of the road map of implementation of end-to-end technology of the distributed registers in financial market. Digital transformation of depository activity and application of a blockchain will allow to lower storage costs and information exchange between market participants.

The association of Financial That is going to develop actively DDS for further application in processes of a digital mortgage that will allow to increase availability of financial services to end consumers. Besides, use of DDS and for other types of securities is planned.

Implementation industry a solution blockchain demanded creation of infrastructure of the distributed registers and formation of the normative and legal environment providing interaction of participants of financial market. Changes in the Federal Law "About a Mortgage" were made, regulations of the Bank of Russia on depository activity, formats of digital documents of the electronic mortgage, standards of the structured messages between depositaries are created.

The largest participants of financial market are connected to network the MasterChain. The association of Financial That performs functions of the operator of network, carries out identification of participants and certification of nodes. An order of connection of participants, performances of smart contracts, rules of rendering technical support by the operator are fixed between participants in terms of use of DDS.

The start of commercial operation of the MasterChain blockchain platform is an important event for financial market. The MasterChain platform created on the platform of Association of Financial That together with key market participants guarantees safe and reliable exchange of financial information. For December, 2019 the MasterChain provides to DDS on the platform accounting of electronic mortgages, development of a system assumes also other types of securities. The created infrastructure and technology is serious assets for the market, including for implementation of the national program "Digital Economy of Russia" regarding development of end-to-end technology of the distributed registers, noted the managing director of Association of Financial That Tatyana Zharkova

implementation of modern technologies helps to Provide to our clients the advanced services. In December, 2019 the Depositary of Sberbank the first in Russia put into the commercial operation decentralized depository a blockchain system which we implemented on the platform the MasterChain together with the Financial Technical Association. At the initial stage we will use this system for accounting of electronic mortgages, and in process of improvement of technology it can be extended also to other types of securities,

2018: Development

The AiTeco company announced on October 8, 2018 development of the decentralized depository system (DDS). Works are custom-made by a command of ITs "AiTeco" of Association of Financial That and then implemented the project using blockchain technology for the solution of not monetary task which reached a stage of commercial operation in Raiffeisenbank.

The innovation center "AiTeco" started system development in February, 2018. For October, 2018 business processes of depository character on registration and storage of new mortgages, change and cancellation of existing are implemented. In the long term — in process of development of the MasterChain platform which will become a basis for a number of the new products and services developed within AFT — opportunity for operational obtaining information on debt repayment and carrying out with e-mortgages of transactions of purchase and sale will be implemented, told in AiTeco.

Transfer of depository operations on electronic mortgages in a blockchain register increases safety of data storage and allows to build interaction of players of mortgage market by an optimal method — without creation of the additional centralized storage.

In September, 2018 Raiffeisenbank began commercial operation of DDS. In more detail about the project read here. It is supposed that in the nearest future other participants of AFT from among large depositaries and Banks of Russia, two of which planned issue of e-mortgages until the end of 2018, also will join the project. Demands to DDS are made by depositaries of Sberbank, VTB, Gazprombank, the AK BARS of Bank, the Central bank and the Agency of mortgage housing lending. At the same time interest in a blockchain platform is shown by representatives not only the financial sector, but also holdings which are going to optimize expenses on document flow.

You look also the Blockchain and cryptocurrency