Sberbank to Offer Crypto Custody Services Amid Russia's Sanction Evasion Strategy

Sberbank, Russia’s largest bank, has announced its intention to offer custody services for digital assets, marking a significant shift in the country’s approach to cryptocurrency. This move is part of a broader strategy to reduce reliance on the U.S. dollar and Western banking networks, which have been heavily impacted by economic sanctions imposed on Russia since 2022. The bank’s proposal includes safeguards such as asset freeze in cases of suspected illegal activity, aligning with conventional banking compliance frameworks.

Sberbank’s plan is currently in the regulatory discussion stage and could be implemented within months, positioning the bank as a key player in Russia’s digital asset ecosystem. This development complements ongoing efforts to establish a state-backed crypto exchange, which will cater to accredited investors, institutional players, and exporters managing cross-border settlements. The exchange will operate under strict legal guidelines, including transaction tracking, proof-of-identity, and state monitoring, ensuring that the use of cryptocurrencies remains controlled and strategic.

The Russian central bank, which previously opposed cryptocurrencies, has recently shown leniency in allowing their use in cross-border trade. A law enacted in 2023 permits businesses to exchange contracts in digital currencies when engaging in international trade. This policy change aims to evade Western sanctions, particularly those affecting the use of SWIFT and correspondent banking services. The central bank’s evolving approach includes support for pilot programs like the digital ruble and tokenized assets, while maintaining strict control over domestic crypto circulation. This “sandbox model” allows for innovation under heavy oversight, making custodial services by trusted state banks like Sberbank particularly valuable.

Sberbank’s entry into the crypto custody market is not an isolated move. The bank has been exploring blockchain technology since 2020, launching its own decentralized finance (DeFi) platform and announcing plans to tokenize a range of financial assets. Earlier this year, Sberbank generated headlines with the announcement of a Bitcoin-linked bond, which is traded over the counter and may be listed on local exchanges in the near future. This indicates the bank’s willingness to integrate crypto throughout the broader financial system. In addition to custody, Sberbank is considering staking services, token offerings, and on-chain settlements, potentially offering Russian institutions a full suite of compliant digital finance tools without relying on international providers.

Russia’s strategic use of cryptocurrencies as a tool for trade resilience is evident in the increasing adoption of tokenized assets, stablecoins, and top cryptocurrencies like Bitcoin and Ethereum for international settlements. This shift allows sanctioned entities to conduct trade without intermediaries controlled by Western powers, bypassing dollar-clearing networks and enabling peer-to-peer international settlements. Sberbank’s move into crypto custody is part of this broader strategy, providing the necessary infrastructure for institutional traders and exporters to securely store and manage their digital assets.