**Sberbank to Introduce Bitcoin and Crypto Custody Services in Russia**
Sberbank, the largest bank in Russia, is set to launch custody services for cryptocurrency assets, positioning itself at the forefront of the country’s digital asset infrastructure amid rising demand for bitcoin and crypto services. This initiative follows a shift in the Russian central bank’s approach to digital assets, which has recently endorsed legislation permitting businesses to utilize bitcoin and cryptocurrencies for international trade, a move aimed at circumventing Western sanctions related to the ongoing conflict in Ukraine.
Anatoly Pronin, the executive director of Sberbank, revealed that the bank has submitted regulatory proposals to the central bank concerning bitcoin and crypto assets. He highlighted the global trend of banks offering custody services and emphasized the importance of ensuring that Russia remains competitive in this evolving landscape. Pronin’s proposals suggest that bitcoin and crypto assets should be regulated similarly to traditional bank accounts, with Sberbank acting as a custodian to ensure the security of digital tokens and protect against hacking and unauthorized access. Additionally, assets could be frozen if law enforcement suspects any illegal activities.
The introduction of custody services is crucial for enhancing the safety of bitcoin and crypto transactions. Gleb Zemskoy, director of blockchain and digital currency development at Insight Finance, underscored the significance of local custody, stating, “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, Sberbank also launched a structured bond linked to the performance of Bitcoin and the USD-to-ruble exchange rate, allowing qualified investors to earn returns based on BTC price movements and the dollar’s strength. Sberbank confirmed that all transactions are processed in rubles within Russia’s legal and infrastructure systems. The bank plans to introduce similar structured investments and a Bitcoin futures product through its SberInvestments platform on the Moscow Exchange. These offerings mark a significant step as one of the first instances where a major Russian institution has rolled out regulated Bitcoin-linked products under updated national regulations.
In conclusion, Sberbank’s move to provide custody services for cryptocurrencies not only reflects the growing acceptance of digital assets in Russia but also aims to enhance the security and regulatory framework surrounding them, ensuring that the country remains competitive in the global digital economy.
**FAQ**
**What are Sberbank’s plans for cryptocurrency custody services?**
Sberbank plans to launch custody services for cryptocurrencies, aiming to secure digital assets and provide regulatory frameworks similar to traditional banking, enhancing transaction safety in Russia.
