VTB patented a multi-issuer blockchain system.
23.01.2019
Using this technology, VTB will develop digital products, services and payment instruments aiming at solving issues related to account for mutual financial settlements between almost unlimited number of system participants. Services include faster payment systems, cross-border payments and loyalty programmes. The services can be used by individuals and legal entities, including other banks. The multi-issuer system aims at reducing costs and increasing efficiency of business processes for all participants.
The prototype for the use of this technology was the bank’s Digital Settlement Service, a tool for p2p transfers based on blockchain. The distributed ledger technology stores unchanged data on customer accounts balance and banks’ mutual requirements, which in its turn are used for clearing and settlements. Smart contracts assumed the functions of the payment system, and the speed of operations were only subject to blockchain. The payments do not provide for cryptocurrencies and are executed in fiat currency, which is the ruble.
“The investments made by VTB in IT development are becoming far more strategic. Previously, they were subject to internal problems, whereas now they are aimed at creating high-tech systems. Patenting this innovation marks a significant progress in the development of the bank’s digital ecosystem and an explicit signal to the market. A global race to patent a number of technologies is underway. The world's leading banks have already registered more than a dozen blockchain patents. In the Russian market, the practice of protecting intellectual property in financial and financу related technologies has emerged recently. We will continue to explore this area further, encouraging our collegues to follow our example,” said Olga Dergunova, Deputy President and Chairman of VTB Bank Management Board.
Link: VTB
ID: 6160
VTB patented a multi-issuer blockchain system.
VTB has obtained a patent for a multi-issuer payment system based on blockchain technology. The patent covers the core functions and structure of the system. This is the first time a bank has patented its intellectual property.Using this technology, VTB will develop digital products, services and payment instruments aiming at solving issues related to account for mutual financial settlements between almost unlimited number of system participants. Services include faster payment systems, cross-border payments and loyalty programmes. The services can be used by individuals and legal entities, including other banks. The multi-issuer system aims at reducing costs and increasing efficiency of business processes for all participants.
The prototype for the use of this technology was the bank’s Digital Settlement Service, a tool for p2p transfers based on blockchain. The distributed ledger technology stores unchanged data on customer accounts balance and banks’ mutual requirements, which in its turn are used for clearing and settlements. Smart contracts assumed the functions of the payment system, and the speed of operations were only subject to blockchain. The payments do not provide for cryptocurrencies and are executed in fiat currency, which is the ruble.
“The investments made by VTB in IT development are becoming far more strategic. Previously, they were subject to internal problems, whereas now they are aimed at creating high-tech systems. Patenting this innovation marks a significant progress in the development of the bank’s digital ecosystem and an explicit signal to the market. A global race to patent a number of technologies is underway. The world's leading banks have already registered more than a dozen blockchain patents. In the Russian market, the practice of protecting intellectual property in financial and financу related technologies has emerged recently. We will continue to explore this area further, encouraging our collegues to follow our example,” said Olga Dergunova, Deputy President and Chairman of VTB Bank Management Board.
Link: VTB
ID: 6160