Posted 2 years ago | by Ben Armstrong
Major Russian Bank's Swiss Division Joins Blockchain Trade Finance Platform
A subsidiary of Sberbank, has entered a commodity trade finance network focused on blockchains. Sberbank Switzerland AG has formed a strategic partnership with Komgo - a Swiss digital trade finance network, aiming to integrate blockchain trade finance service into their operating system.
The key objective of this agreement is to develop digitization of trade finance, according to representatives from Sberbank Switzerland AG who commented on the project in an interview with media.
Blockchain is used extensively in trade finance, and has been developed to suit the needs of both small and large companies. One of the first blockchain trade finance platforms was created in Hong Kong, with a platform that was already in use in mainland China.
New Ways for Trade Finance to Happen
Sberbank's chief of trade finance, Evgeny Kravchenko, pointed out Sberbank Switzerland AG targets commodity trade finance. The executive also highlighted Sberbank Switzerland AG's supporting role in globalizing trade flows while Russia and the Commonwealth of Independent States’ countries are the main market segments.
Digitalization of trade finance has been accelerating significantly in recent years, anticipating, “the needs of market participants," said Kravchenko, adding that Komgo's trade financing would further extend the Sberbank operational performance.
Komgo is a decentralized business finance company which is building an Ethereum blockchain-based commodity trade financing network. One of the company’s main focuses is to speed up transactions in trade finances and allow parties involved to monitor data with instant boost in the commodity sector.
Sberbank recently demonstrated a strong an interest in the blockchain industry. According to reports, the bank partnered with S7 Airlines, a major Russian airline firm, to launch a blockchain ticket selling system in August. Sberbank also plans to introduce its own one-to-one secure coin backed by the Russia Rouble.
A Look Crypto in Russia
Russia’s attitude towards blockchain technology was unpredictable back in 2017. The country seems to be constantly changing its stance on blockchain and crypto.
This year, the situation seems to have changed. Russia regulators have been taking it seriously as the crypto finally has its own legal status in the nation, even though the government's view of using crypto payments on a regular basis remains relatively limited.
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