MTS acquires another 38% of blockchain platform operator Factorin

MOSCOW. March 7 (Interfax) - Mobile TeleSystems (MTS) , Russia's leading mobile service provider, acquired an additional 38% stake in factoring company Factorin LLC, a developer of a blockchain platform for trade finance, in the second half of 2023.

MTS and investment company Digital Horizon acquired 51% of Factorin for 867 million rubles in July 2021. MTS considers these funds an investment in a joint venture.

In its report for 2023, MTS said it acquired 24% of a factoring company for 433 million rubles last August and another 14% for 229 million rubles in October. As a result, an 88% stake is recognized as an investment in a joint venture on the basis of the terms of a shareholder agreement, MTS said.

Factorin is a blockchain system for trade finance with a focus on financing supply chains, factoring and settlements.

In the summer of 2023, Russia's Central Bank included MTS subsidiary Blockchain Hub LLC in the registry of digital financial asset operators. Blockchain Hub is the operator of the DA Hub blockchain environment for issuing digital financial assets, which was developed with Factorin.