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Alfa-Bank, one of the largest private commercial banks in Russia, has joined a blockchain trade finance network supported by HSBC.
According to an official announcement on November 3, Alfa-Bank is the first Russian bank to become a member of Contour, a blockchain platform that connects the world’s leading financial institutions such as HSBC, ING and Citi. The network allows the bank’s customers to monitor the processing and modification of trade finance transactions and cut operating costs.
Evgenia Fomina, head of Alfa-Bank Lending Directorate, said the Contour-based pilots in the Russian market intend to improve the quality of cross-border transactions, stating:
“Joining the Contour platform and launching pilot projects on the Russian market will fine-tune the product development strategy for cross-border transactions. Customer requests become more complex and we always try to offer the best solutions “.
Formerly known as “Voltron”, Contour focuses on the process of drafting and issuing letters of credit using R3’s Corda blockchain. The initiative was launched in 2018 by R3 and eight global banks, including HSBC, ING, Citi, Bangkok Bank, BNP Paribas, Standard Chartered, SEB and CTBC.
Although the project started two years ago, the Contour network finally went into operation only last month. According to Global Trade Review, Contour left beta in early October 2020 after launching a commercial beta in early 2020. On November 1, the Bangladesh branch of global banking company HSBC announced the completion of the first letter credit card based on the country’s blockchain. transaction on Contour.
Carl Wegner, CEO of Contour, said that Alfa-Bank’s entry into the network marks another milestone for the project. “Their involvement will continue to build an inclusive network that will improve trade around the world,” said Wegner.
Headquartered in Moscow, Alfa-Bank is no stranger to blockchain technology. The bank has also been a member of the leading R3 blockchain consortium since 2018. In October 2019, Alfa-Bank launched a pilot project via R3’s Marco Polo network to test cross-border payments between Russia and Germany. Previously, Alfa-Bank jointly launched a liquidity management service based on the corporate Waves blockchain.
