Russia’s largest bank Sberbank to roll out Bitcoin, crypto custody services to catch up with global banks

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Key Takeaways

Sberbank, Russia’s largest bank, plans to launch custody services for crypto assets.
The initiative aligns with Russia’s evolving regulatory stance, aiming to ensure the safety and accessibility of digital assets.

Sberbank, Russia’s biggest bank, revealed plans to offer custody services for crypto assets, positioning itself at the center of the country’s digital asset push, according to a new report from Reuters.

The state-owned bank’s initiative follows Russia’s central bank softening its stance on crypto assets, supporting legislation last year that permits businesses to use digital currencies in international trade as a way to navigate Western sanctions imposed over the Ukraine conflict.

“The custodian is the backbone of the world’s economy in terms of cryptocurrencies,” said Gleb Zemskoy, director of the development of blockchain technology and digital currencies at Insight Finance. “And at the moment, it is in the hands of private foreign companies, which indicates a huge risk.”

Anatoly Pronin, executive director of Sberbank’s alternative payment solutions division, said the bank has submitted proposals to the central bank regarding crypto asset regulation after observing an increasing number of banks globally offering custody services.

During a cryptocurrency regulation discussion, Pronin outlined that Sberbank’s proposals would regulate crypto assets similarly to bank account assets, with the bank guaranteeing the safety of tokens.

The custody service would allow for asset freezing if law enforcement suspects illegal activity while making transactions more accessible and protecting accounts from security breaches.