Russia’s largest bank, Sberbank, plans to launch crypto custody services as it pushes to lead the nation’s digital asset market.
With a market value of $85 billion, Sberbank is the biggest bank in Russia and will soon provide crypto custody services.
Sberbank’s move aligns it with Russia’s expanding cryptocurrency sector, which has accelerated due to sanctions and heightened interest in virtual currencies worldwide.
Sberbank’s Central Bank Proposal
According to Reuters, Sberbank will offer custodial services for cryptocurrencies.
This program aligns with the nation’s sentiment on digital assets and signifies a shift in bank operations.
Anatoly Pronin, Sberbank’s executive director for alternative payment solutions, stated that the bank has previously presented the central bank with new rules.
These rules would guarantee their safe management by regulating cryptocurrency assets similarly to traditional bank accounts.
The custody services offered by Sberbank are intended to protect digital assets while facilitating their use in financial transactions.
According to a statement from Pronin, the idea was created to satisfy the growing need for regulated bitcoin services.
He promised prospective buyers that tokens would be safe under Sberbank custodian services.
He added that the bank will be able to freeze funds under the new service, making transactions safer and interventions less vulnerable to cyberattacks in the event of an illegal syndicate.
Russia’s Changing Crypto Laws
The country passed legislation in 2024 that makes it possible to conduct international trade using digital currency while avoiding the constraints of the conventional financial system.
The rise in popularity of cryptocurrencies in Russia is largely attributed to this regulatory shift.
This change was primarily brought about by the need to avoid Western sanctions, such as Donald Trump’s tariff threats, which have had a significant negative impact on the Russian financial system ever since the war in Ukraine.
Additionally, Sber, the biggest commercial bank in Russia, has ventured into the financial innovation space by releasing a bond product associated with Bitcoin.
Currently trading on over-the-counter (OTC) markets, the commodity could soon be listed on the nation’s leading stock exchange.
Meanwhile, Russia is thinking of launching a domestic cryptocurrency exchange supported by the government in addition to Sberbank’s custodial offering.
The experimental legal framework will serve as the foundation for this ongoing conversation.
It is expected to provide a safe environment for high-net-worth individuals and institutional investors to conduct cryptocurrency transactions.
