Home News Four major Russian holdings launch a joint venture for blockchain and IoT...

Four major Russian holdings launch a joint venture for blockchain and IoT development

State-owned Gazprombank, government corporation Rostec, Russian telecom giant MegaFon and USM Holdings have concluded a deal for creating MF Technologies (MFT) joint venture aimed at developing blockchain and IoT projects, as reported by TASS news agency on June 9.

“The creation of a joint venture by business leaders in the key infrastructural spheres of emerging digital economy will allow partners to maximally effectively implement comprehensive, innovative projects across industries, to implement solutions based on blockchain technology and the Internet of Things,” – MegaFon’s representative stated on the matter.

MFT will shortly embark on developing solutions for digital financial platforms. Rostec corporation is expected to utilize its expertise in the field of implementing digital technologies.

“As a separate structure, MFT is a natural step in the implementation of our corporate strategy to achieve the ambitious goal of digital leadership. The creation of this joint venture will open the access to capital before us and allow us to create a platform for the implementation of innovative fintech solutions,” – Sergey Soldatenkov, CEO of MegaFon said.

Worth $450 000 000, MFT already has a 59% stake in Russian Internet giant Mail.ru Group. MegaFon’s subsidiary Lefbord Investments Limited, Gazprombank, Rostec and USM Holdings own 45%, 35%, 11% and 9% of MFT’s shares respectively.

Most of the partnering companies have already been participating in various blockchain projects. For instance, in March, deputy chairman of Gazprombank Alexander Sobol revealed that the bank plans to conduct pilot cryptocurrency transactions via its Swiss subsidiary. The end of last year saw GPB Digital, a corporate venture fund run by Gazprombank, investing $120 000 in tokens issued by Aximetria platform. “Kovylkinsky Electromechanical Plant” half-owned by Rostec opened a bidding for a major mining equipment procurement worth $280 000 in March 2018, whereas back in October 2017, MegaFon conducted a blockchain-based bonds placement with Raffeisenbank.