VTB, a major Russian bank, announced yesterday that it has obtained “a patent for a multi-issuer payment system based on blockchain technology.”
The bank claims it is “the first case of a bank patenting its intellectual property” in this field.
VTB aims to use this technology to “develop digital products, services and payment instruments to account for financial settlements between an almost unlimited number of system participants.”
The system is expected to “reduce costs and increase the efficiency of business processes for all participants.”
These services, which can be used by individuals and legal entities including other banks, range include fast payment systems, cross-border payments and loyalty programs.
“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,” stated Olga Dergunova, Deputy President and Chairman of VTB Bank Management Board.
“A global race to patent a number of technologies is 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,” she added.
In 2017, a consortium of Russian banks including VTB developed a distributed ledger dubbed Masterchain. This ledger uses a modified ethereum protocol while complying with national security standards. The technology was intended to make payments safer and faster.
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