Russia’s Biggest Bank Pilots Money Transfer on an IBM Blockchain

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Russia’s biggest bank in terms of assets, Sberbank has completed a real- time money transfer over a blockchain that is based on Hyperledger Fabric- blockchain software built by IBM. It is the first and foremost ever payment transaction over blockchain in Russian banking industry. The money was transferred between a payer and the receiver in two different banks with an undisclosed sum. It was completed with the help of IT systems of Sberbank along with the web application for bank’s client for tracking the transfer.

It was reported before that the consortium of open- source Hyperledger blockchain led by Linux Foundation had released the first blockchain software that is production- ready and it is named Hyperledger Fabric 1.0.

The MD Stella Kudachkina of Sberbank told, “The blockchain solution created by Sberbank has allowed us to make the first pilot payment transaction – using IBM Blockchain technology – in the history of Russian banking industry.”

Hinting at a blockchain payments’ future for banking customers in retail, Sberbank also listed numerous partners, who are involved in the first pilot payment transaction. The partners include the second- largest phone operator in Russia, MegaFon; IT solutions provider of Moscow, MegaLabs; technology giant IBM and Russia’s major private bank, Alfa- Bank.

The noteworthy point here is that Alfa Bank and Sberbank hosted the nodes of blockchain with an aim of serving the scenario to develop new settlement function between both the banks.

The executive of Sberbank also added, “The advantage of using this technology when performing settlements is the high speed at which transfers are made: after the money is sent the transaction is recorded on the receiver’s account almost instantly, in real time, unlike the traditional system that is used to make transfers.”

The announcement from Sberbank comes after the bank joined the Enterprise Ethereum Alliance (EEA), which is a group of companies, governments and start-ups, who are working to take advantage of open- source Ethereum blockchain technology for enterprise solutions. The chief executive of Sberbank, also a notable bitcoiner, Herman Gref said earlier this year that by 2019 there will be commercial applications of blockchain technology in Russia.

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