June 8, 2015

CUBER – LHV Bank started public use of blockchain technology by issuing securities


LHV Bank became first bank to start real world experiment by issuing 100 000 EUR worth of cryptographically protected claims against bank into bitcoin blockchain. CUBER (Cryptographic Universal Blockchain Entered Receivables) is technically new kind of certificate of deposit and is meant to be a building block for various innovative financial products.


In parallel, fintech technology startup Cuber Technology together with Swedish ChromaWay developed and published IOS and Android app Cuber Wallet for fast, free, P2P mobile fiat currency payment.


Cuber Wallet lets smartphone users keep their private keys in their phones and move different sums in Euros between users instantly, securely, 24/7 and free of charge using bitcoin blockchain infrastructure. The new app is designed for smaller P2P transactions and uses camera feature of smartphones to make payments simpler. Developers believe Cuber Wallet will prove to be very useful also for smaller internet transactions.


At the moment Cuber Wallet is at an early stage but one day it could be coming to replace cash – you have your euros stored in your wallet, separate from bank account. You can keep them or pay them to another user. Financial service provider is needed to deposit your money to a bank account. Just like cash.


The real financial innovation is under the bonnet. The Cuber Wallet app was created to make use of the new CUBER technology platform which came about when on May 14th LHV Bank became the first bank in the world to start an experiment with real programmable money and issued receivables in the form of colored coins.


As a technological platform and a financial instrument CUBER can be used to store or generate value, for value transferring, managing liquidity or even for automated transactions between machines (internet of things). Due to scripting support CUBER is meant to be the Lego tile that enables developers to build already known, but also totally new financial services in traditional currencies.


CUBER can at the moment be described as an experiment but its innovation is aimed at the global market.


“The potential of CUBER is huge – think telecommunication industry developments last 20 years. How many new cool applications we are daily using  have come out from Development Departments of telecom companies. No, they are coming from startups. This is possible due to the widespread usage of decentralized TCP/IP protocols.

We hope CUBER can do something similar to financial industry – liberate innovation from organizational borders, truly decentralize it. And true innovation in financial sector will flourish” commented Rain Lõhmus, CEO of Cuber Technology.


CUBER and Cuber Wallet are built on top of open colored coins technological standard and at the moment use bitcoin blockchain as a database. The unique feature of CUBER is that it is decentralized and thus opens the way to move fintech innovation away from big banks to smaller software developers. CUBER is designed so it could be tied with different currencies. Alongside everyday users and businesses that can benefit from easy payments, CUBER platform could be implemented by start-ups, crypto currency exchanges and banks from all over the world. It is designed to be open sourced and developer friendly and can be programmed to take on new functions (customer motivation schemes, ticketing systems etc.).


The platform was brought to life by the innovative Estonian LHV Bank and Swedish ChromaWay AB, an expert in colored coins technology. The team behind this revolutionary building block is international and unites Estonian, Ukrainian, Swedish, Israeli and Russian developers. As a bank LHV makes sure it takes into account rules and regulations and thus laying the legal framework has been an important part of CUBER’s development.


The first working version of Cuber Wallet app is ready and in testing. At the moment Cuber Wallet app can be downloaded by everyone, but transferring money into the app from a bank account is restricted. During testing the app and the platform will be improved to ensure smoother processes and better user experience. New features will be added soon. Cuber is aiming to go beta this autumn. Look out!


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Who’s who?

Cuber Technology is based in Estonia. The fintech company is a subsidiary of LHV Group and is the developer of Cuber Wallet.

LHV Bank is young forward thinking bank from Estonia. Originally an investment firm the bank was established in 2009. We are dedicated to serve private customers and SME-s as well as quickly growing enterprises. LHV puts the emphasis on well designed, easy to use and comfortable electronic channels such as internet bank, mobile bank and online chat for communication. LHV is a fast growing and innovation friendly company and as such we like to partner up with other similar enterprises. As one of the first banks to officially hire a crypto currency expert, it has been the bank’s aim to bring to market a working payment solution using blockchain.

ChromaWay is an international software development company specializing in colored coin technology. Established in 2014 and based in Sweden ChromaWay unites developers from Sweden, Israel, Ukraine and Russia.