The company “Distributed Registry Systems” has become the first official blockchain operator in Russia, which will ensure effective interaction between financial market participants.
Russian banks have launched their own blockchain platform
The Association of Financial Technologies (Association of Fintech, AFT) announced the registration of the first blockchain operator in Russia. It became the company “Distributed Registry Systems”. The founders of the company were the largest Russian banks: VTB, Gazprombank, Promsvyazbank, as well as the National Payment Card System (NSPK) and the Moscow Exchange. Each of the co-founders received 16.67% of the company’s shares, and AFT transferred the rights to the Masterchain to the organization.
Masterchain is a tool for interaction between financial market participants using distributed ledger technology. The Masterchain platform has been developed since 2016, and in 2019 it was tested and received a certificate of compliance from the FSB, which confirms that the platform meets all the standards and requirements of information security, which is a key condition for the use of digital developments in the financial sector.
The launch of the Masterchain platform into commercial operation took place at the end of 2019. Then the Managing Director of the Association of Fintech Tatyana Zharkova noted that the launch of a decentralized depository platform (DDS) is an important step for the entire financial market of the country.
“The Masterchain 1.0 platform was developed by the organization’s employees and passed the appropriate licensing, which proves the security and reliability of information transfer within the platform. Now it is used for storing and exchanging mortgages, but soon the solution can be used for all types of securities. The introduction of the Masterchain platform to the financial market is another step towards the implementation of the national program “Digital Economy of the Russian Federation” in terms of the development of end-to-end distributed ledger technology, ” Zharkova commented.
At the end of December 2020, VTB Bank conducted the first transaction to issue a bank guarantee using the domestic blockchain “Masterchain”.
Russian banks continue to digitize their products
The launch of the Masterchain platform will allow Russian banks to digitize their products, such as mortgage loans, securities and much more. However, the country’s financial organizations do not plan to stop there. For example, Sberbank and VTB intend to increase the issue of cards in the next two to three years, 50% of which will be digital. So, by the end of 2023, Sberbank plans to issue up to 50% of cards exclusively in digital form. VTB plans to expand digitalization to 40% of the cards. Now the share of digital cards in VTB accounts for only 5% of the issue, representatives of the bank noted.
And according to research by Xangle and Hanhwa, this year will see a convergence of the traditional finance market and the cryptocurrency sector. First of all, this will be manifested in the integration of digital currencies into the banking system. According to Xangle analysts, in 2021, banks will start creating custodial wallets with cryptocurrency support in order to provide users with simultaneous access to both digital assets and fiat money.
Earlier, BeInCrypto reported that Russian banks supported the creation of the digital ruble.
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