Russia’s Largest Bank Sberbank Bags License to Offer Digital Asset Services

The Central Bank of Russia Federation has issued an operational license to Sberbank (Sber), the country’s largest banking institution, to allow the bank to launch a digital asset exchange alongside its own digital token.

Sberbank noted that it would use blockchain technology to run its operations to guarantee the safety of crypto transactions made on the platform. The bank would also allow other financial institutions to make transactions through its systems as well as issue their own virtual assets.  

Aside from Sberbank, Atomyze, a blockchain startup, and Lighthouse, a financial firm, have also received licenses to conduct digital asset operations in Russia. Atomyze was the first crypto platform in the country to receive such approval to legally trade cryptocurrency. 

Sberbank Files to Issue Digital Token

Back in 2020, Sberbank filed an application with the country’s central bank to launch its own digital asset platform and to create a native token dubbed Sbercoin for its corporate customers.

As per the report, the digital token will not be in the form of cryptocurrency, rather it will be “a tokenized form of the rubles the companies hold on their Sber accounts. Just like money in a bank account, but running on a different tech infrastructure.”

The digital token will be available to investors and companies who have an interest in blockchain-based partnerships.  Sbercoin will also allow companies to use Sber’s platform based on the Hyperledger Fabric blockchain and transactions will be automatic, the bank said.

A Change of Heart 

Earlier this year, Russia’s Central Bank called out to the government for a full ban on cryptocurrency activities in the country, including mining, to protect its financial policies. 

The apex bank claimed that crypto assets are majorly used to support illicit activities such as money laundering and funding terrorism. However, the country’s financial ministry opposed the claims, arguing that crypto should be regulated appropriately instead of banning them completely. 

After the disagreement between the duo, the central bank reached an agreement with the regulators to regulate cryptocurrency as a form of currency.