In the latest turn of events, Russia's Sberbank Rossii becomes the first to obtain a distributed ledger technology (DLT) patent. The Sberbank blockchain patent obtained for an operational engine using DLT and a Repurchase Agreement (repo) dealing with a smart contract solution.
The patent solution allows stakeholding parties to self-execute the deal after registering the terms of the agreement. The “smart contract” generated can be signed by the parties using their respective digital signatures on the DLT blockchain.
The agreement would be fulfilled simultaneously with the transfer of funds as soon as the stakeholding parties sign the smart contract.
How does the Sberbank Blockchain work?
The end-to-end encrypted environment of the Sberbank blockchain patent provides a seamless, secure environment for such financial transactions.
While the engine monitors the securities market for price fluctuations and records them on the blockchain while a deal is under progress, the automated process releases funds to both parties upon the closure of a deal.
This is not the first time Sberbank has taken a step to keep up in the game with the latest financial technology adaptation to stay ahead in the market.
The Sberbank blockchain patent, however, is a milestone achievement for the bank’s December 2018 repo agreement with the Russian National Settlement Depository (NSD) and a brokerage firm using blockchain technology.