Russia’s $85 Billion Sberbank to Launch Crypto Custody Services

Sberbank, Russia’s largest bank with a market value of $85 billion, is set to offer crypto custody services.

By taking this step, Sberbank aligns with Russia’s growing cryptocurrency market, which has gained momentum amid sanctions and increased global interest in digital currencies.

Sberbank Proposal to Central Bank

Sberban has announced that it will provide custodial services to cryptocurrencies, according to Reuters. This initiative signals a change in the bank operations and is coherent with the attitude of the country towards digital assets. The executive director of Sberbank in alternative payment solutions, Anatoly Pronin, said that the bank had already offered new regulations to the central bank.

These regulations would ensure the safe management of crypto assets, regulating them similarly to traditional bank accounts. Sberbank’s custody services are designed to safeguard digital assets while also enabling their use in financial transactions.

Pronin, in a statement, pointed out that the proposal was designed to meet the increasing demand of regulatory cryptocurrency services. He assured interested clients that customers would keep tokens secure in Sberbank custodian services. He further clarified that under the new offering, the bank would have the ability to freeze assets so that in case of illicit syndicate, transactions would become safe, and interventions less prone to cyber-attacks.

Russia Evolving Crypto Regulations

In 2024 the nation enacted laws that enable the use of digital currencies to carry out international trade and avoid the limitations of the traditional financial system.

Such a change in regulation has largely contributed to the growing popularity of cryptocurrencies in Russia. This turn came mainly due to the necessity to avoid Western sanctions, such as the tariff threats of Donald Trump who, since the war in Ukraine, has severely affected the Russian financial system.

Furthermore, the largest commercial bank in Russia, Sber, has also entered the arena of financial innovation and issued a bond product linked to Bitcoin. The product is now trading on over-the-counter (OTC) markets and may soon be listed on the country’s top stock exchange.

Meanwhile, in addition to the custodial offering of Sberbank, Russia is also considering the introduction of a native government-backed cryptocurrency exchange. This exchange is in development, and will be based on an experimental legal framework. It is anticipated to service high-net-worth individuals and institutional investors, offering them a secure environment to perform cryptocurrency transactions.