Sberbank announced a new strategic partnership with the blockchain trade finance platform, Komgo. It’s the first time a Russian bank joins a blockchain platform to provide better commodity trade finance.
The new agreement is signed between Switzerland subsidiary of Sberbank, Sberbank Switzerland AG and Komgo. Sberbank is the largest Russian bank, and the new partnership can lead to more integration between traditional financial organizations and blockchain services in the 11th biggest economy in the world.
Commodity trade finance has always been a major aspect of business for traditional banks. Sberbank focuses a lot on this part of the economy and tries to provide the best services, especially for its international customers. The new integration and partnership with a trade financing startup grom the blockchain industry, help them move faster in the new era of digitalization.
Komgo, based on Ethereum blockchain, provides faster and more secure ways for customers to track their deals in the commodity trade finance. Evgeny Kravchenko, Global Head of Trade Finance in Sberbank, and Chairman of the Board in Sberbank (Switzerland) AG said about the new partnership:
“Commodity trade finance is a strategic business of Sberbank (Switzerland) AG. By September 2020, we have financed more than 15 million MT of commodities worth over USD5 bn. We support trade flows with our key markets, Russia & CIS, as well as flows around the world. Best services, cutting-edge technologies and prompt responses to an ever-changing environment are essential principles that guide our team. In recent years, trade finance digitalization has accelerated dramatically, following the needs of market players. We strongly believe that our customers will truly appreciate the enhanced efficiency of their operations due to Komgo’s convenient and high-tech solutions.”
The decentralized infrastructure that Komgo provides for Sberbank is a vital component for increasing the trust in the trading platforms. While many traditional banks are still struggling in providing decentralized, more secure services, banks like Sberbank can have a competitive advantage by working with blockchain startups. Faster, more secure, and reliable transactions are some of the results of partnering with Kongo for Switzerland arm of Sberbank.
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