Moscow Credit Bank has issued a blockchain-based bank guarantee denominated in Chinese currency, claiming the product is the first in the country.
The bank guarantee exceeds 100 million Chinese yuan — or nearly $144,600 USD at time of publication. According to a statement, the transaction was performed through the Masterchain blockchain platform, andthe Russian national blockchain network created to transfer digital assets between its participants.
As one of the advantages of performing the transaction on-chain, the financial institution mentioned that "the beneficiary does not need to wait for the paper version and make a separate request to the bank to confirm the authenticity of the issued document." A bank guarantee is a financial safeguard offered by a lending institution.
Through a contractual agreement, a bank agrees to assume financial responsibility for a specific transaction if the customer fails to fulfill its obligations.Read more on cointelegraph.com