Metinvest makes its first contract via a blockchain platform

According to its website, Metinvest steel and mining group made its first transaction using we.trade blockchain-based trade platform.

The underlying transaction is the purchase of equipment for one of Metinvest’s re-rollers from a European supplier.

The key objective of the smart contract is to try the blockchain-based platform and to evaluate its potential as a new type of payment terms that the Group can offer further to its customers.

We.trade blockchain-based trade platform is supported by UniCredit Italian banking group. It is based on the distributed ledger technology that includes the blockchain and smart contracts.

After a smart contract is created, the buyer confirms the delivery, and the payment is initiated automatically on the terms agreed on by the parties. It makes the contracting process faster and more transparent.

“Blockchain technology allows for the creation and management of a large distributed transaction management database that can be shared across multiple nodes of a network. Such transactions demonstrate the Group’s willingness to work in a trusted environment with secure technology, improved risk mitigation and enhanced visibility,” said Jamilya Baimukhambetova, Head of Corporate Finance at the European Re-rolling Business Unit of the Metinvest Group.

As reported earlier, Metinvest Digital helped optimize gas consumption at Zaporizhstal.

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