Sberbank partners with Komgo to use its finance blockchain platform

Written by: Ali Raza
September 15, 2020
  • Komgo utilizes a blockchain technology that allows users to exchange digital data in a secure way.
  • It will help accelerate trade finance transactions and ensure consistent tracking of deals by stakeholders.
  • Sberbank is now the first Russian-based bank to use a finance blockchain platform to facilitate transactions.

Sberbank Switzerland AG has signed a deal to use the blockchain finance service of Swiss trade finance platform Komgo. Sberbank representatives revealed this partnership with Komgo, saying that the partnership will address the increased digitalization of trade finance.

 “In recent years, trade finance digitalization has accelerated dramatically, following the needs of market players,” he said. Kravchenko also added that the partnership with Komgo will increase the operational efficiency of Sberbank.

The acceleration of trade finance transactions

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As reported earlier, Komgo is a decentralized trade finance startup that develops a platform for commodity trade finance using the Ethereum blockchain technology.

One benefit of the technology is the acceleration of trade finance transactions. It also helps the easy tracking of a deal by stakeholders.

The company has been seriously involved in the blockchain industry in recent times. Last month, Sberbank started collaborating with S7 airlines, a top airline company based in Russia. The partnership was to offer a ticket system based on blockchain technology.

According to the announcement during the start of the partnership, blockchain technology will help streamline the ticketing system in the airline industry. Sberbank has also considered rolling out its stablecoin, which is valued in the same ratio as the Russian ruble.

A better solution for faster transaction speed

The Komgo platform offers a plethora of solutions to increase transaction speed and ease trade finance between participants.

It uses blockchain technology which gives the stakeholders the chance of controlling their deals in real-time, which provides the transparency needed for commodity trade.

Chief Executive Officer of Kompo Souleima Baddi commented on the partnership by admitting that Sberbank’s partnership is an important step for Kompo’s growth. He said the alliance had added another trust layer to its digital network by unlocking important geographical markets for its users.

Baddi stated that the company is excited about the deal with Sberbank, which will make transactions quicker, more efficient, and safer.

Sberbank is now the first Russian bank using blockchain technology

With this deal, Sberbank has become the first Russian bank that will be using a finance blockchain platform to facilitate transactions. The goal is to facilitate transactions using blockchain technology.

With this partnership, other banks in Russia may soon follow in Sberbank’s footsteps by partnering with blockchain-based platforms to ease transactions. It also shows that blockchain is now widely accepted as a safer and more efficient method of facilitating transactions.