Raiffeisenbank conducted a transaction with an electronic mortgage

The Russian branch of Raiffeisen Bank issued the first electronic mortgage using a decentralized depository system (DDS) on the MasterChane blockchain platform. An electronic document containing all information about the parties to the transaction was posted through DDS.

DDS is based on MasterChane - the Russian “blockchain sandbox” of the Central Bank, a fresh platform for piloting innovative banking services. It has been developed by the largest banks of the Fintech association since 2016.

The first trial transaction was carried out to test technologies for registering real estate transactions. After a successful test, Raiffeisen Bank plans to expand the capabilities of e-mortgages for all real estate transactions.

The DDS system is essentially a software add-on based on MasterChane, which provides an end-to-end, automated process for custodial accounting and file storage.

The entire process is carried out in a simple and secure manner. The transaction begins with the client filling out an electronic form. After which a complete package of documents for the transaction is generated, including an electronic mortgage. The finished package is signed with an enhanced electronic signature and sent to Rosreestr. There the collateral is verified and recorded, after which the file is sent back to the bank's file storage.  

This application of blockchain technology ensures the security of electronic mortgage data. The process of registering a transaction is significantly simplified, its execution time is reduced, and the risks of lack of collateral disappear. The technology allows you to work with clients remotely, by replacing a paper mortgage with an electronic security, reduce the time for obtaining a mortgage, and reduce costs. In addition, the records stored in the blockchain registry provide greater stability and reliability when working with confidential information. 

Today, an increasing number of Russian banks are ready to work with cryptocurrencies, but since there is no regulation in the country, they cannot provide services. Recently, a conference was held at the Moscow Stock Exchange, where the future of financial markets and the country’s cryptocurrency rules were discussed at a round table. Large Russian banks are showing interest in blockchain because the demand for technology is very high.