Sberbank, the largest state-owned bank in Russia, is working with S7 Airlines, a major domestic airline company, to introduce a blockchain-based ticket sale system, which will enable corporate clients with instant settlement through smart contracts and tokens.
On August 26, it has been reported by local newspaper Kommersant that the new system is planned to roll out in September 2020.
However, the report notes that this would be the first time virtual tokens are used for payment and settlement in Russia.
Representatives at Sberbank and S7 said that the new system is only targeting corporate clients at the current stage of development, as the blockchain-powered system intends to cut settlement time from as many as 10 days to just 20 seconds.
According to Kommersant, the new ticket sales system uses a proprietary blockchain platform that allows companies to develop their own blockchain applications as well as create smart contracts. As such, S7 Airlines has already placed its blockchain ticketing app on the platform by Sberbank.
As estimated, it is not clear how exactly tokenization will be implemented within this new initiative.
Sberbank will purportedly act as the owner of the tokenization platform, which “tokenize money” from a corporate client’s will account using smart contracts.
Thus, an executive at S7 Airlines said that the tokens will be linked to “real accounts of clients.”