VTB has become the first bank in Russia to issue a digital bank guarantee for commercial operation using the Masterchain blockchain platform.
A guarantee for the fulfilment of payment obligations in the amount of 392 million rubles ($5 million) was issued in favour of Russian firm MTS. The transaction was carried out in real time, with VTB issuing a digital guarantee signed with a reinforced qualified signature, which MTS accepted, sending a corresponding notification to the bank.
Masterchain is a blockchain platform developed by the Russian central bank with market participants and the Fintech Association.
Vadim Kulik, deputy president and chairman of the VTB management board, says: "We are the first in Russia to bring our technological systems into compliance with the requirements of the Masterchain blockchain platform and launched the industrial issuance of electronic bank guarantees.
"This allows you to speed up the process of obtaining guarantees by the beneficiary and reduce the paper document flow. In addition, the placement of data in a distributed register eliminates the risks of fraud with bank guarantees."