Russia's largest bank, Sberbank, says it has successfully used blockchain technology to conduct international letter of credit (L/C) transactions for the Russian steel and mining company, Severstal.

A Belarusian affiliate of Severstal's and Sberbank had already tested the issuance of an international L/C under a contract for the supply of steel.

Regional first

The bank announced the result of its first use of an international L/C transaction using blockchain technology at the recent St Petersburg International Economic Forum.

Sberbank claims it is the first of its kind of blockchain transaction in eastern Europe.

Practical application

"Sberbank was among the first in the world to work on the practical application of blockchain technology," the bank's senior vice president, Igor Bulantsev told the forum.

"We see great prospects for the use of this technology, including for international L/Cs," he added.

Bulantsev said he was confident that the bank's experience gained in the prototype development process will allow Sberbank to bring the quality of customer service to a new level in the future.

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