ICD issued its first yuan digital bank guarantee on the Masterchain blockchain platform

2023: Issue of digital bank guarantee in yuan on blockchain

Moscow Credit Bank (MKB) issued the first digital bank guarantee in Chinese currency in the amount of more than 100 000 000 yuan. The deal was implemented on the Masterchain blockchain platform. This was announced on March 1, 2023 by the Distributed Register System company.

Plus, the digital bank guarantee is that the beneficiary does not need to wait for the paper version to be received and make a separate request to the bank to confirm the authenticity of the issued document. The finished bank guarantee, which is agreed by the three stakeholders, is displayed in the system on the Masterchain blockchain platform. She cannot be faked or lost.

The issued bank guarantee is denominated in yuan, since the importer's contracts are tied to Chinese currency. In case of payment under the guarantee, the supplier will receive rubles at the rate agreed by the parties.

This is the first digital bank guarantee on the market, which was issued in yuan through the Masterchain system. Most foreign trade contracts are serviced in Chinese currency, and the demand for payments in yuan is only growing. This is a logical step for the market, in the near future we will see more such examples. The decision will be especially relevant for large groups of companies that have many subsidiaries that accept a large number and on a regular basis bank guarantees, "said Natalya Bakhova, Director of the Department of International and Structural Financing of the ICD.

2022: Launch of digital bank guarantees on the Masterchain blockchain platform

Moscow Credit Bank (MKB) joined the service "Digital bank Guarantees" (CBG), which works on blockchain the -platform MasterChain"." The digital contract solution ensures that reliable guarantees are issued as soon as possible due to the fact that there is no loss of time during the waiting, conclusion and execution of the contract. This was announced on November 28, 2022 by the company. Distributed Registry Systems

All operations on the platform take place online. CBG provides protection against unauthorized changes in documents. The service uses digital guarantee templates and built-in logical controls, supports work with documents of the entire holding, including parent and subsidiaries, as well as the function of automated transfer of guarantees to a single information system in the field of procurement.

The IBC is actively developing the direction of the documentary business. This service will offer a convenient solution for our customers. The issue of bank guarantees on the Masterchain blockchain platform is much faster and safer, document flow is simplified thanks to the distributed registry technology used in the CBG service. This is an example of how new technologies can be used in daily activities, - said Natalya Bakhova, director of the department of international and structural financing of the ICD.

We are confident that the applied blockchain-based technologies will allow ICD to simplify communications with customers on documentary products. The service creates a single environment for three parties - participants in the warranty process. The interaction becomes completely transparent: all parties at any given time have access to the same information about the guarantee and its changes throughout the life cycle. Due to this, it is possible to mitigate the financial risks of obtaining a falsified guarantee, and on average reduce operating costs for document approval by 40%. Guarantor banks gain access to a single decentralized register of large beneficiary companies and can easily increase the volume of guarantees issued, "said Yulia Mukhina, owner of the Masterchain CBG product.