Sunday, March 24, 2019

Russia’s Largest Banks Are Set to Launch Cryptocurrency Trading Products

Two of Russia’s largest banks, Sberbank and Alfa Bank are set to launch cryptocurrency trading products to serve their clients as reported in the Kommersant newspaper on June 15.

The said two banks with the supervision of the Bank of Russia, the country’s central bank, will offer cryptocurrency services that will be trading six major cryptocurrencies on leading exchanges which include Bitstamp and Kraken.

Sberbank is a state-owned bank, which is in charge of processing government employee paychecks, while the Alfa Bank is the biggest private bank in Russia.

These two banks intend to do cryptocurrency trading with the support of  AddCapital investment fund, the National Settlement Despository and Group IB.

Anna Ivanhuk, Sberbank Private Banking deputy chair commented, “We want to offer our clients a completely transparent version of the entrance to digital assets that fully meets the regulatory requirements that will allow them to invest in an interesting product in Russia.”

Anton Rakhmanov, Alfa-Bank’s managing director of private wealth management said, “Our goal is to speed-up the recognition of the digital assets as legitimate financial assets as soon as possible.”

AddCapital will be in-charge of the technical solution for the project. Its CEO, Alexey Prokofyev said that that the investors will buy the share of the fund, and that the trading portfolio will include the six major cryptocurrencies such as bitcoin cash, bitcoin, litecoin, and ethereum. There will be a review of the coins’ combination every 4 months. A trading algorithm will handle their proportions.

Prokofyev added that the shares are  “liquid”. The clients will be able to withdraw fiat whenever they want.

The portfolio pilot process will take 45 days. Whether the said cryptocurrency trading product will be offered to the market or not would be a concerted decision between the Bank of Russia and the respective government agencies.

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