by Enoch Mwathwa
Sberbank, Russia’s largest bank by assets, plans to offer custody services for cryptocurrency assets. The move aligns with the growing adoption of digital assets in the Russian financial system.
The bank, with a market capitalization of $85 billion, is developing secure storage solutions for digital currencies. These services will be regulated under Russia’s emerging crypto laws.
Sberbank Proposes Crypto Custody Services to Russia’s Central Bank
Sberbank has submitted formal proposals to the Central Bank of Russia. The proposals detail how digital asset custody should be regulated and managed. Anatoly Pronin, Executive Director of Alternative Payment Solutions at Sberbank, presented the details during a recent public forum.
Pronin said the bank wants to protect customer funds held in crypto. “Custody services will offer security equal to that of traditional banking systems,” he said. The bank is working on frameworks to manage crypto risks, ensure asset protection, and support fast settlements.
The Central Bank of Russia has changed its stance on crypto over the past year. In 2023, the bank opposed crypto usage, citing market volatility and financial stability concerns. However, it has since approved the controlled use of digital currencies for international trade. This is part of a strategy to reduce reliance on U.S. dollar-based payment systems.
Sberbank’s Role in Russia’s Digital Economy Strategy
Sberbank started engaging in work related to the development of digital assets in 2021, when it launched a blockchain platform, Sber. The platform allows smart contracts and the release of tokens, as well as business solutions on the blockchain.
Custody Participation in the crypto industry will further enhance the position of Sberbank in the process of digitalizing Russia. The bank also targets to offer institutional level infrastructure to handle crypto money. These advancements are particularly important because of the search of companies to find alternative ways to access ordinary banking channels.
Western sanctions have restricted international access to financial systems such as SWIFT. Consequently, Russian companies are examining blockchain-based payments platforms. Crypto custody providers offer a regulatory and performance friendly means of overseeing digital value transfer.
The project of Sberbank also promotes the national crypto ambitions. The digital ruble is piloted by the Central Bank of Russia and can be combined with the crypto business run by banks in the future.
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