VTB, Russian FinTech Association found first blockchain operator in Russia

By Sunniva Kolostyak

VTB Bank has announced that together with other members of the Russian FinTech Association (AFT), it has founded a blockchain operator that will develop distributed ledger technology in Russia.

Together with AFT, VTB, one of the biggest banks in the country, is developing the platform together with the Bank of Russia and financial market participants. VTB is also establishing a centre of excellence for the use of blockchain technology in the financial sector, with plans to create new business models using blockchain to develop services for retail customers and businesses.

AFT, a 2016 organisation, includes members such as the Bank of Russia, Sberbank, VTB, Alfa-Bank, Gazprombank, Otkritie Bank, National Payment Card System, KIWI Bank, Ak Bars Bank, Tinkoff Bank, Raiffeisenbank, Rosselkhozbank and the Moscow Exchange.

VTB already has experience working on the first certified Masterchain platform in Russia, which is now part of the perimeter of the blockchain operator.

Commenting on the new blockchain operator, Vadim Kulik, Deputy President-Chairman of the Management Board of VTB Bank, said: “The creation of a blockchain operator is an important and timely next step in the development of the digital finance space using DLT in Russia.

“At VTB we have been innovating with blockchain technology for a while and have successfully worked on the Masterchain platform, where we used it to issue electronic bank guarantees. We will continue to actively engage in the creation of new services and products using blockchain technology, which are able to significantly increase the efficiency of business processes, reduce document flow, and mitigate fraud risks,” Kulik said.

Tatyana Zharkova, General Director of AFT, added: “For several years, the largest financial institutions have been developing distributed ledger technology on the site of the FinTech Association.

“The establishment of a new society for the development of this area will give an impetus to the work on creating blockchain-based services for the Russian financial sector through bringing together specific expertise, combining the efforts of organizations that see advantages for their business in the use of distributed ledger technology.”