[Taklimakan Blog] Raiffeisenbank Transferred Automatic Payments to Blockchain

With the help of blockchain technology, Raiffeisenbank has reduced the time of settlements with counterparties from several days to several minutes.

Russian commercial bank Raiffeisenbank has created a blockchain system for automatic payments for non-bank counterparties. This was announced in the company’s official press release. As part of the project, the bank created a decentralized settlement automation system for Petroleum Trading based on the R-Chain and PROLEUM blockchain platforms. The system significantly accelerated the shipment of goods with prepayment or automatic closing of accounts receivable, the bank writes.

“The process becomes completely transparent for the parties, and the minimum possible time for completing the process is thus reduced from one day to half an hour,” the press release said.

As soon as a payment request appears, it is redirected to the PROLEUM node with access to the financial institution’s registry through a special API. In a couple of seconds, the payment request is transmitted to the bank itself, and then through the payment corridor of the Central Bank of the Russian Federation — to the counterparty’s bank.