On "MasterChain" there passed pilot transactions on issue of bank guarantees

2018: Pilot transactions on issue of digital bank guarantees based on "MasterChain"

Fintekh The association (AFT) announced on December 26, 2018 TAdviser project implementation "Digital Bank Guarantees" (DBG) based on blockchain- the platform "MasterChain" created by AFT together with Bank of Russia and key participants of financial market. As the initiator of project implementation within AFT the bank acted VTB.

Project Objective

The project is executed for the purpose of creation of universal service for issue and support of digital bank guarantees. Placement of information on the issued guarantees in the distributed register "MasterChain" allows banks and their clients to receive authentic data in real time and also reduces risks of falsification of data, explained in Fintekh. For ensuring confidentiality access to guarantees is implemented using a role model "MasterChain".

Pilot transactions

Raiffeisenbank together with the Ak Bars Bank and also VTB bank was carried out by a number of pilot transactions, using the TsBG system installed on nodes of banks.

So, Ak Bars Bank acted as bank guarantor in the transaction on issue of the digital bank guarantee of performance of the contract of Gemont LLC. Process of a design of a guarantee was executed by the principal through the TsBG system installed on a node Ak Bars Bank. The Gazprom Neft company, the client of Raiffeisenbank, acted as the beneficiary on the issued guarantee, having received confirmation and having accepted a guarantee, using the TsBG system installed on the MasterChain node in Raiffeisenbank. Access for all participants of the transaction to the TsBG system was provided using their strengthened qualified electronic signature.

The feature of the Digital Bank Guarantees project on "MasterChain" consists in creation of the entrusted environment for storage of the register of guarantees. Forge or lose the document placed in closed a blockchain network, impracticablly. Implementation of this technology will lead to reduction of quantity of "grey" guarantees and also will increase attractiveness of warranty bank instruments in corporate business. Beneficiaries should not spend time and resources on requests in banks for confirmation of authenticity of the issued guarantees any more — Roman Lesokhin, the director of directorate of product development of corporate business considers the Ak Bars of Bank.

At the same time, Raiffeisenbank tested a system with the clients — Croc Inc. Ltd and Croc Region LLC, having issued for them guarantees.

Didzhitalization is the key direction of business development of Raiffeisenbank and is put in corporate strategy — Dmitry Sredin, the managing director, the chief of the department on work with the large companies of Raiffeisenbank reported. — Thanks to joint participation in pilot transactions we could not only check a possibility of application of blockchain technology for process automation in trade financing, but also understand expectations of our clients from digital bank guarantees.

In turn, VTB tested issue in "MasterChain" of guarantees of several types for clients of the different industries for benefit of the systemically important enterprises. In particular, the bank carried out pilot transactions with the clients, having acted as the guarantor for providing obligations of such principals as the Naberezhnye Chelny pipe plant "TEM-PO", the supplier of complete solutions in the field of power of "Universal-Elektrik" and also manufacturing company of cable products "Estralin Pauer Sistems".

VTB actively investigates possibilities of application of blockchain technology for banking products and services. As one of such innovation projects we selected the digital bank guarantee, the pilot of a system, joint with AFT, on the MasterChain prepares a basis for industrial implementation of service in the bank industry. The platform AFT gives the fine chance for testing of this service with other market participants — Olga Dergunova, the deputy president-chairman of the board of VTB Bank noted.

Project Development

The working group created by participants AFT including experts in the field of warranty business of IT is also right, continues active work on development of the project. Program development is conducted at expert and technical support of Croc system integrator. With system implementation there was an opportunity to create a uniform electronic office of the client.

It is planned that using a uniform office principals and beneficiaries will get access to all the transactions to MasterChain networks regardless of by what bank they are issued.

According to representatives of AFT, universal service will allow clients of banks to manage more effectively the warranty portfolio and will give verifiability of reliability of a guarantee in real time.

Thanks to joint, professional work on the Association platform all participants of pilot transactions could estimate convenience, security and efficiency of TsBG on the MasterChain platform. Other participants of AFT are going to join the project also — the managing director of Association of Financial That Tatyana Zharkova noted.