A subsidiary of Russia’s largest bank, Sberbank, has entered a commodity-trade finance network focused on a blockchain.
Sberbank Switzerland AG has signed an agreement to apply its blockchain-powered trade finance service with Swiss Trade Finance Platform Komgo.
Sberbank Switzerland AG officials told Cointelegraph that the partnership with Komgo is addressing the increasing digitization of trade finance.
Evgeny Kravchenko, Head of Trade Finance at Sberbank, outlined that commodity trading finance is a strategic sector of Sberbank Switzerland AG. According to the executive, Russia and the countries of the Commonwealth of Independent States are key markets for the firm, while Sberbank Switzerland AG also facilitates trade flows globally.
“Trade finance digitalization has rapidly accelerated in recent years, following the needs of market participants,” Kravchenko said, adding that trading finance from Komgo would further broaden the efficiency of Sberbank’s operations.
As previously reported, Komgo is a decentralized commercial financing startup that is building an Ethereum blockchain-based commodity exchange finance network. One of its objectives is to speed up trade finance transactions as well as allow stakeholders to monitor an instantly successful deal with commodity trading details.
Recently, Sberbank successfully entered the blockchain industry. As reported in August by Cointelegraph, Sberbank is collaborating with a major Russian airline firm, S7 Airlines, to develop a blockchain-based ticket selling system. It is claimed that the bank is also considering launching its own one-to-one stablecoin tied to the Russian ruble.