Bank of Russia Approves Bitcoin-linked Financial Products Amid 51% Crypto Inflow Surge for Accredited Investors

Russian financial institutions have been granted authorization to offer cryptocurrency-linked financial products to accredited investors, marking a significant shift in the Bank of Russia’s regulatory approach toward digital assets. The central bank announced on May 28 that banks can now provide derivatives, securities, and other digital financial instruments tied to cryptocurrency prices, provided they adhere to strict conditions to mitigate risks. A key requirement is that these products must not involve the physical delivery of cryptocurrencies, ensuring investors gain exposure to price movements without direct asset ownership.

The decision follows a notable surge in crypto asset inflows by Russian residents, which rose 51% in the first quarter of 2025 to 7.3 trillion rubles ($81.5 billion). Major banks, including T-Bank (formerly Tinkoff Bank), have already begun rolling out such products. T-Bank announced on May 29 the launch of Bitcoin-linked digital financial assets (DFA) available to accredited investors through the state-backed tokenization platform Atomyze. The offering aims to provide a regulated and secure investment channel within the framework of Russian law, bypassing the need for direct engagement with crypto exchanges.

Despite enabling banks to offer crypto-linked products, the Bank of Russia continues to discourage direct cryptocurrency investments. In a statement, the central bank reiterated its stance against recommending financial institutions or their clients hold crypto assets outright. The announcement also highlighted ongoing discussions about an experimental regime to allow certain investors to trade crypto assets directly, though details remain pending.

In its latest financial stability review, the Bank of Russia estimated Russians’ holdings of crypto assets on centralized exchanges (CEXs) at 827 billion rubles ($9.2 billion), with Bitcoin dominating at 62%, followed by Ethereum (22%) and stablecoins (15.9%). However, some industry figures argue these figures underestimate actual holdings, citing examples of large-scale private investments held in wallets and decentralized platforms. Sergey Mendeleev, founder of digital settlement exchange Exved, noted that individual investors’ holdings likely exceed the reported estimates.

Analysts suggest the move reflects a cautious recalibration of Russia’s crypto policy, balancing innovation with risk management. By restricting access to accredited investors and enforcing non-deliverable structures, the central bank aims to limit systemic exposure while allowing sophisticated participants to engage with digital assets. The framework aligns with broader efforts to establish a regulated crypto finance ecosystem, avoiding the volatility and custody challenges tied to unregulated markets.

Institutional initiatives, such as structured bonds from Sberbank and Bitcoin futures contracts planned for the Moscow Exchange, underscore growing confidence in the regulatory framework. However, the success of these products hinges on investor demand and the clarity of forthcoming risk guidelines from the Bank of Russia. The experimental regime for “highly qualified” investors—requiring advanced financial expertise—further indicates a phased approach to expanding crypto access under strict oversight.

Russia’s strategy positions the country as a potential hub for regulated crypto finance amid global regulatory uncertainty. While the decision does not signify full endorsement of decentralized crypto ecosystems, it represents a pragmatic step toward integrating digital assets into the financial system while maintaining control. The central bank’s focus on capital adequacy and risk limits ensures the initiative remains a controlled experiment, avoiding a broad retail investor rollout.

The move underscores a strategic balance between fostering innovation and mitigating systemic risks, reflecting Russia’s evolving approach to navigating the crypto economy within its own regulatory boundaries.