Russia’s largest bank joins blockchain trade finance platform

A subsidiary of Sberbank, Russia’s largest bank, has joined a blockchain-based platform for commodity trade finance.

Sberbank Switzerland AG has signed an agreement with Swiss trade finance platform Komgo to apply its blockchain-powered trade finance service.

Representatives from Sberbank Switzerland told Cointelegraph that the collaboration with Komgo addresses the growing digitization of trade finance.

Evgeny Kravchenko, head of trade finance at Sberbank, outlined that commodity trade finance is a strategic business of Sberbank Switzerland. According to the executive, Russia and the Commonwealth of Independent States countries are the company’s key markets, while Sberbank Switzerland also supports trade flows globally.

“In recent years, trade finance digitalization has accelerated dramatically, following the needs of market players,” Kravchenko said, adding that Komgo’s trade finance will further expand the efficiency of Sberbank’s operations.

A spokesperson for Sberbank Switzerland AG told Cointelegraph that collaboration with Komgo is the bank’s first partnership tapping blockchain-based commodity trade finance. The representative noted that the initiative is not expected to immediately impact Sberbank’s operations in Russia, but might be implemented in the future. “The technology is developing and we will be active to drive this innovation in various markets,” the spokesperson said.

As previously reported, Komgo is a decentralized trade financing startup that is developing a commodity trade finance platform based on the Ethereum blockchain. One of its purposes is to accelerate trade finance transactions as well as allow stakeholders to track a deal with instant success to commodity trade information.

Sberbank has been aggressively tapping the blockchain industry recently. As Cointelegraph reported in August, Sberbank is working with a major Russia-based airline company, S7 Airlines, to introduce a blockchain-based ticket sale system. The bank is also reportedly considering launching its own stablecoin pegged one-to-one to the Russian ruble.