Sberbank Switzerland AG Joined Blockchain-Based Platform

Sberbank is the largest bank in the Russian Federation and this fact highlights its significance. Moreover, it has a subsidiary in Switzerland, called Sberbank Switzerland AG. It is worth mentioning that, Sberbank’s subsidiary joined a blockchain-based platform for commodity trade finance.

Interestingly, Sberbank Switzerland AG signed an agreement with the Swiss trade finance platform Komgo to apply its blockchain-powered trade finance system. Furthermore, the collaboration with the trade finance platform addresses the growing digitization of trade finance.

People should take into account that commodity trade finance is a strategic business of Sberbank Switzerland. In fact, Russia and the Commonwealth of Independent States are the company’s main markets. Moreover, Sberbank Switzerland also supports trade flows globally.

Also, in recent years trade finance digitalization accelerated dramatically, following the needs of market players. Importantly, thanks to Komgo’s trade finance it will be easier to expand the efficiency of Sberbank’s operations.

Sberbank and plans for the future

It is worth noting that, Komgo is a decentralized trade financing startup. This startup is developing a commodity trade finance platform based on the Ethereum blockchain. Notably, one of the purposes is to accelerate trade finance transactions and to allow stakeholders to track a deal with instant success to commodity trade information.

Russia’s largest bank is actively exploring the blockchain industry. For example, Sberbank is working with a major Russian airline company called S7 Airlines to introduce a blockchain-based ticket sale system. This would be the first time when virtual tokens are used for payment and settlement in Russia. Importantly, the new system is only targeting corporate clients at the current stage of development. Thanks to the blockchain-powered system it will be possible to reduce settlement time from as many as 10 days to just 20 seconds.

Interestingly, the new ticket sales system uses a proprietary blockchain platform. This platform allows companies to develop their own blockchain applications and to create smart contracts.