Payment Technology Based On Blockchain Patented By Russian Bank VTB
VTB, Russian-state controlled bank recently announced that they have patented technology for blockchain payments.
Through this technology, VTB will develop digital products, services, and payment instruments to account for financial settlements between an almost unlimited number of system participants. Services include fast payment systems, cross-border payments, and loyalty programmes. It can be used by individuals and legal entities, including other banks. The multi-issuer system has the potential to reduce costs and increase the efficiency of business processes for all participants.
The prototype for the use of this technology was the bank’s Digital Settlement Service, a tool for p2p transfers based on the blockchain. The DLT grants storage of unchanged data on customer accounts balance and banks’ mutual requirements, which in turn are used for clearing and settlements. Smart contracts took over the functions of the payment system, and the speed of operations was only limited by the performance of blockchain.
Olga Dergunova, Deputy President and Chairman of VTB Bank Management Board:
“The investments being made by VTB in IT development are becoming far more strategic. Previously, they helped to solve internal problems whereas now they are aimed at creating high-tech systems. Patenting this innovation is a significant step towards the development of the bank’s digital ecosystem and an important milestone in the market. A global race to patent a number of technologies are underway. The world's leading banks have already accumulated more than a dozen patents related to the use of blockchain. In the Russian market, the practice of protecting intellectual property in financial and near-financial technologies is only recently emerging. We will continue to invest in and develop this area and urge our peers in the industry to do the same.”
About VTB Bank
VTB Bank is one of the leading universal banks of Russia. VTB Bank and its subsidiaries form a leading Russian financial group – VTB Group, offering a wide range of banking services and products in Russia, CIS, Europe, Asia, Africa, and the U.S. It offers standard term deposits, structured deposits, promissory notes, certificates of deposit, and corporate overnight accounts, as well as placement of funds on current accounts; and term loans, credit lines, overdraft loans, complex loan products, and consultancy services, as well as loans to the mining industry.
In addition, it offers payment cards, payment processing, custody, syndication, trade and export finance, anti-money laundering and counter-terrorist financing policies, construction and development services, treasury, electronic banking, and bank cards.