VTB completed pilot transactions on issuing digital bank guarantees.
27.12.2018
VTB completed pilot guarantees for its clients - principals and beneficiaries within the Digital Bank Guarantee system (DBG). Bank issued a guarantees by order of Naberezhnochelninsky Tube Works TEMPO, the supplier of integrated energy solutions Universal-Electric and cable manufacturer Estralin Power Systems. The DBG system functionality was audited with regard to various parties: guarantor, beneficiary and principal.
VTB initiated the DBG system development. The system requirements were outlined in cooperation with other participating banks.
The project aims at developing the universal service for issuing blockchain based digital bank guarantees. Since all the legally binding documents are issued in electronic form, being confirmed with e-signatures, DBG system allows the parties to abandon the paper documents at every stage of process, including application for a bank guarantee, issuing, presentation of demand for payment. This fastens the business process, improve workflow and reduce expenses.
Moreover, the integration of data into distributed ledger system Masterchain enables the customers to receive valid and relevant information on every guarantee operation, where they perform as participants (beneficiary or principal). Thus, the inclusion of data on digital bank guarantee into distributed ledger verifies the document is issued and signed by authorized person. Therefore, blockchain technology mitigates the risks of documentary counterfeit during the execution of transactions.
At the same time, the DBG system ensures confidentiality of information, since access to data on guarantees is implemented on the basis of a role model using smart contracts.
«VTB is actively considering options for the implementation of blockchain technology in banking products and services. As one of such initiatives, we have chosen a digital bank guarantee, a joint pilot project performed in cooperation with FinTech Association. The DBG pilot project forms the basis for the industrial service implementation in the banking industry. The platform of FinTech provides an excellent opportunity to test this service with other market players», - says Olga Dergunova, Deputy President and Chairman of VTB Bank Management Board.
Source VTB
ID: 6165
VTB completed pilot transactions on issuing digital bank guarantees.
VTB successfully launched the pilot project on issuing digital bank guarantees based on the blockchain platform Masterchain within Fintech Association.VTB completed pilot guarantees for its clients - principals and beneficiaries within the Digital Bank Guarantee system (DBG). Bank issued a guarantees by order of Naberezhnochelninsky Tube Works TEMPO, the supplier of integrated energy solutions Universal-Electric and cable manufacturer Estralin Power Systems. The DBG system functionality was audited with regard to various parties: guarantor, beneficiary and principal.
VTB initiated the DBG system development. The system requirements were outlined in cooperation with other participating banks.
The project aims at developing the universal service for issuing blockchain based digital bank guarantees. Since all the legally binding documents are issued in electronic form, being confirmed with e-signatures, DBG system allows the parties to abandon the paper documents at every stage of process, including application for a bank guarantee, issuing, presentation of demand for payment. This fastens the business process, improve workflow and reduce expenses.
Moreover, the integration of data into distributed ledger system Masterchain enables the customers to receive valid and relevant information on every guarantee operation, where they perform as participants (beneficiary or principal). Thus, the inclusion of data on digital bank guarantee into distributed ledger verifies the document is issued and signed by authorized person. Therefore, blockchain technology mitigates the risks of documentary counterfeit during the execution of transactions.
At the same time, the DBG system ensures confidentiality of information, since access to data on guarantees is implemented on the basis of a role model using smart contracts.
«VTB is actively considering options for the implementation of blockchain technology in banking products and services. As one of such initiatives, we have chosen a digital bank guarantee, a joint pilot project performed in cooperation with FinTech Association. The DBG pilot project forms the basis for the industrial service implementation in the banking industry. The platform of FinTech provides an excellent opportunity to test this service with other market players», - says Olga Dergunova, Deputy President and Chairman of VTB Bank Management Board.
Source VTB
ID: 6165