Sberbank Plans Crypto Custody Services for Russian Investors

Sberbank, Russia’s largest bank, has announced plans to launch secure crypto custody services for domestic investors. This initiative aims to regulate crypto holdings similarly to ordinary bank accounts, ensuring extra safety for clients. The bank has already submitted proposals to the Russian central bank to assist in drafting regulations for this new service.

Anatoly Pronin, Sberbank’s executive director for alternative payment solutions, highlighted the bank’s vision for crypto regulation. He emphasized the importance of safeguarding clients' assets, noting that crypto assets may be frozen in cases of suspected malpractice. This approach simplifies and secures transactions, protecting accounts against hackers and fraud. Pronin’s statements underscore Sberbank’s commitment to integrating crypto assets into the traditional banking framework, ensuring that digital assets are managed with the same level of security and compliance as conventional financial instruments.

Gleb Zemskoy, the head of blockchain and digital currency development at Insight Finance, noted the significance of local custodians in the crypto economy. He observed that while custodians play a crucial role in sustaining the global crypto market, most of this activity is currently handled by privately owned, foreign-based firms. This poses significant risks to investors. Zemskoy believes that a local custodian like Sberbank would mitigate these risks for Russian investors, providing a more secure and reliable environment for managing digital assets.

In addition to custody services, Sberbank is developing other crypto products. On June 2, the bank issued a structured bond linked to Bitcoin and the USD/ruble exchange rate. This product allows eligible investors to earn returns based on the price variations of Bitcoin and the dollar. All transactions are conducted in rubles and comply with Russian legislation, demonstrating Sberbank’s commitment to integrating crypto assets into the domestic financial system while adhering to local regulations.

Sberbank has also expressed interest in becoming an official market maker for Russia’s new regulated crypto platforms. This move follows the government’s new regulations on digital assets. Alexander Zozulya, director of the global markets department at Sberbank, stated that the bank aims to provide liquidity, stabilizing the market by ensuring the availability of buyers and sellers. However, these platforms are currently accessible only to highly qualified investors, reflecting the government’s strict approach to crypto trading rules. This regulation is designed to deter illegal activities and ensure a market free of serious investors.

Sberbank’s plans to offer crypto custody services reflect its innovative approach to the evolving financial landscape. By securing the digital assets of its clients and operating within the local jurisdiction, the bank is gaining credibility in the Russian crypto market. This move is expected to encourage larger investors and make the crypto market in Russia more reliable. Sberbank is setting an example of how traditional finance can collaborate with the rapidly expanding universe of digital assets, potentially inspiring other banks to follow suit.