A Russian state-owned enterprise is developing a blockchain-based replacement for SWIFT.

After months of planning, Russia's replacement for the Society for Worldwide Interbank Financial Telecommunication (legally SWIFT) service to the financial industry may have arrived.

Rostec, a state-owned defence conglomerate based in Moscow, has announced the development of a blockchain platform for international settlements. The CELLS industrial blockchain is Russia's ostensible replacement for SWIFT.

According to the company's press release, the CELLS blockchain was created by one of its 700 subsidiaries, Novosibirsk Institute Software Systems (NIPS). The platform is multifunctional and can handle up to 100 thousand transactions per second, with additional throughput potential.

According to Rostec Executive Director Oleg Yevtushenko, the platform will enable Russia to avoid all international sanctions by allowing settlements in national currencies.

"The system will enable clearing participants to switch to settlements in national currencies, eliminating the risk of sanctions and ensuring the independence of national financial policy," Yevtushenko said.

The company also intends to broaden its blockchain capabilities beyond international settlements. Among the other use cases highlighted in the release are user identification, data storage, digital passport issuance, and a web application tool protected from hacking and DDoS attacks.

The company has already invited potential customers to test the solution, including software developers, product/system integrators, large corporations, financial institutions, and banks.

Following Russia's invasion of Ukraine, the international community, primarily the West, imposed severe sanctions on Russia. Most international markets and services are closed to the country, and its economy and financial system are under attack.

The European Union approved the sixth tranche of sanctions against Russia this week, according to the Wall Street Journal. The sanctions include a phased oil embargo against Russia. This week, the US Treasury Department also expanded its list of special Russian designates.

Russia's quest for SWIFT alternatives, as well as ways to avoid other international sanctions, has led it to investigate blockchain technology and other digital currency solutions. Russia is granting legal status to digital currencies and establishing a CBDC.

Russian digital currency legislation will include trading as well as block reward mining. Meanwhile, according to Central Bank of Russia President Elvira Nabiullina, its CBDC is on track for a pilot phase launch next year.