Russia’s Sberbank Plans to Launch Bitcoin and Crypto Custody Services

Bitcoin Magazine

Russia’s Sberbank Plans to Launch Bitcoin and Crypto Custody Services

Sberbank, Russia’s largest lender, plans to offer custody services for cryptocurrency assets, aiming to lead the country’s digital asset infrastructure as demand for bitcoin and crypto services grows.

The move comes as Russia’s central bank has softened its stance on digital assets, recently supporting legislation that allows businesses to use bitcoin and crypto in international trade to bypass Western sanctions imposed on Russia over its conflict in Ukraine.

The executive director of Sberbank Anatoly Pronin said the bank has submitted proposals to the central bank regarding the regulation of bitcoin and crypto assets. He noted that more banks globally are starting to offer custody services, and Sberbank wants to ensure Russia isn’t left behind.

Pronin explained that the bank’s proposals would regulate bitcoin and crypto assets similarly to traditional bank accounts. Sberbank would act as a custodian, guaranteeing the security of tokens and providing safeguards against hacking and unauthorized access. Assets could also be frozen if law enforcement suspects illegal activity.

Custody services are essential for making bitcoin and crypto transactions safer. Gleb Zemskoy, director of blockchain and digital currency development at Insight Finance, emphasized the importance of local custody, saying, “The custodian is the backbone of the world’s economy in terms of cryptocurrencies. And at the moment, it is in the hands of private foreign companies, which indicates a huge risk.”

On June 2, the bank also launched a structured bond linked to the performance of Bitcoin and the USD-to-ruble exchange rate. The product allows qualified investors to earn returns based on BTC price movement and the dollar’s strength. 

“All transactions are processed in rubles within Russia’s legal and infrastructure systems,” Sberbank stated.

Sberbank plans to launch similar structured investments and a Bitcoin futures product through its SberInvestments platform on the Moscow Exchange. These offerings represent one of the first times a major Russian institution has introduced regulated Bitcoin linked products under updated national regulations.

This post Russia’s Sberbank Plans to Launch Bitcoin and Crypto Custody Services first appeared on Bitcoin Magazine and is written by Oscar Zarraga Perez.