• Sberbank has submitted proposals to Russia’s central bank to regulate crypto custody similarly to traditional bank assets.
  • Russia is exploring crypto for cross-border grain and oil transactions amid increasing sanctions.

Sberbank, Russia’s largest bank and lender, has announced plans to introduce cryptocurrency custody services.

The move signals a shift in the country’s approach to digital assets, aligning with broader trends as central banks across the globe reconsider crypto’s role in traditional finance.

The announcement comes as Russia’s central bank softens its previously cautious stance on cryptocurrencies.

The technology has increasingly been used to navigate international sanctions imposed after Russia’s invasion of Ukraine, spurring regional interest in crypto adoption.

Anatoly Pronin, executive director of Sberbank’s alternative payment solutions division, revealed that the bank has submitted regulatory proposals to the central bank.

These aim to align the treatment of cryptocurrency assets with that of traditional bank assets, ensuring similar protections and oversight.

Speaking at a discussion on crypto regulation, Pronin emphasised Sberbank’s readiness to guarantee token safety.

He noted that more banks worldwide are now exploring custodial services, prompting Russia to keep pace.

Custody Viewed as Critical Infrastructure

Gleb Zemskoy, director of blockchain and digital currencies at Insight Finance, underscored the importance of custody in the digital economy.

“The custodian is the backbone of the world’s economy in terms of cryptocurrencies,” Zemskoy said. “And at the moment, it is in the hands of private foreign companies, which indicates a huge risk.”

The Russian Agricultural Bank recently announced a joint evaluation project with the Bank of Russia to explore the use of digital assets for grain settlements. This marks an expansion of Russia’s crypto payment experiments, following successful oil transaction use cases.

Meanwhile, the Finance Ministry has suggested launching a national crypto stablecoin.

In a related move, Tether had earlier blocked Russian digital wallets from holding over $30 million.

Edited by Annette George