Raiffeisen Bank Now Offering e-Mortgage Via Blockchain Tech
According to today’s report by Kommersant publication, the Raiffeisen Bank’s Russian branch officially announced electronic mortgages utilizing Masterchain, a local blockchain network. Through this system, the documents representing data from both members pertaining to the transaction, details regarding the loan itself and its agreed upon timeframe, in addition to the property bought was all uploaded on a DDS. This decentralized platform is structured on the local Russian blockchain network known as Masterchain. This network used to transfer important data through the blockchain was developed by a collection of Russian financial entities including the nation's Central Bank for the past two years.
How the Blockchain Solution Works
Raiffeisen’s IT department's Head, Andrey Popov, explained that these documents are first authenticated via an e-signature then delivered to a state regulator focused on real estate related data collection, Rosreestr. Once checked, the electronic mortgage token is then stored with Raiffeisen Bank. This system for electronic mortgages is reported to be the first of its kind within the Russian real estate market as claimed by the Kommersant publication.
In addition, Kommersant stated that although Rosreestr has yet to be linked onto the Masterchian network, discussions to incorporate the government regulator on to the blockchain-based platform is underway. Such a connection is believed to increase processing speeds, facilitating a faster method to transport mortgage-related data and close deals without the need for additional parties.
Next Step in Blockchain Revolution
For the Russian Bank, the next step needed to apply blockchain to the real estate industry is to utilize the technology in the process of buying and selling of contracts in addition to other real estate oriented processes. As the Rosreestr agency has not been incorporated into Masterchain, the development of this next step faces obstacles.
The Kommersant publication additionally declared that two anonymous Russian financial entities are also taking part in this DDS system with plans to roll out electronic emortgages before the new year. In addition, blockchain real estate solutions have already been trialed within the Netherlands according to reports issued by Cointelegraph this June. The nation’s land registration is also predicted to become integrated into blockchain tech in a three-year timeframe.
Cointelegraph claimed that prime financial entities within Russia have been open about their growing interest in the technology and the cryptocurrency market at large. The growing demand for such developments remains high within the region and around the world. In addition, Russia’s Central Bank took part in an ICO trial that was reportedly successful in attempting to establish a draft of digital assets regulation.