Raiffeisenbank Russia Launches First Blockchain-Based Mortgage Bond

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Mon, 09/24/2018 - 10:32
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Raifeissenbank (Russia) is first to make a deal on the Blockchain platform Masterchain to launch an electronic mortgage bond. The head of business development of the I-Teco firm that developed the decentralized depository network (DDN), through which the transaction was made, explained that this network is an IT-structure where the custodians transmit the commissions of bailor-banks and which carries them out later.

How it works

The customer fills in an electronic form, which is later authenticated with an electronic signature. Then the XML-file is sent to the Federal Service for State Registration, Cadastral Records and Cartography of Russia and after that, it is stored in the depositary for storage. Once this is done, a token for the mortgage bond is created and sent to the owner’s securities account.

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Plans for improvement

Currently, the Masterchain network is being connected to the Federal Service for State Registration, Cadastral Records and Cartography of Russia. This would ensure more difficult and larger-scale operations with real estate in the future.