On 15th Sep,2020, Sberbank (Switzerland) AG, has signed an agreement with Komgo, a blockchain based platform for commodity trade finance. Sberbank (Switzerland) AG is a part of Sberbank CIB, the corporate and investment banking business of the Sberbank Group of Russia.
Sberbank Group is one of the world’s leading financial institutions. The Group employs more than 260,000 people in over 20 countries and includes Sberbank of Russia, the country’s largest bank, which serves over 100 million customers and manages over a third of the nation’s loans and deposits.
Komgo provides a wide range of solutions that facilitate trade finance between participants and increase the speed of transactions. The blockchain technology allows stakeholders to control a deal in real time, offering the transparency that commodity trade needs.
Sberbank’s Deputy President and Head of Global Markets, Andrey Shemetov, said that while the Russian law does not permit operations with cryptocurrency, but the Swiss legislation allows them. He explained –
“We want to serve our customers and consider that strategically we should have access to all types of products and services,”
The representatives from Sberbank (Switzerland) AG said that collaboration with Komgo addresses the growing digitization of trade finance. Evgeny Kravchenko, Global Head of Trade Finance, Sberbank, and Chairman of the Board, Sberbank (Switzerland) AG outlined that the commodity trade finance is a strategic business of Sberbank (Switzerland) AG.
According to him, Russia and the Commonwealth of Independent States countries are the company’s key markets, while Sberbank (Switzerland) AG also supports trade flows globally. Kravchenko said by adding that Komgo’s trade finance will further expand the efficiency of Sberbank’s operations:
“In recent years, trade finance digitalization has accelerated dramatically, following the needs of market players.”
The Komgo network has partnered with 20 banks and more than 140 corporate transacting on an ongoing basis, with global operations in EMEA, APAC and the US. It enables participants to quickly exchange data in a digital, secure, and decentralized way.
“Sberbank is an important strategic partner for Komgo. Their membership brings another layer of trust to our digital network and unlocks key geographical markets for our users. We are excited to support Sberbank Switzerland and their customers to transition to a safer, more efficient way of trading.”– Souleïma Baddi, CEO, Komgo
In the start of 2020, Sberbank’s CEO Herman Gref had emphasized on the importance to educate people on the subject of cryptocurrency so that people do not perceive it as a means of savings. He also called for allowing the use of cryptocurrency and warned against excessive regulations in the field.