2 of Russia’s Largest Banks Partner to Serve Clients Trading in the Cryptocurrency Market

Just two weeks ago, Russian president Vladimir Putin answered questions from his constituents on his annual TV show. Among the topics that got through was blockchain technology, and Putin was asked for his opinion on the innovation.

The answers given by the controversial president were vague at best, as he replied to the three questions with a reticent air. However, Putin did remark that his government is closely monitoring the crypto landscape to determine how best to participate in the growing market.

Now, it seems Russia is rolling out implementations using blockchain in the financial sector side of things. A recent report stated that two of the country’s largest financial firms are developing a digital currency portfolio for their private clients, Coindesk reported.

Sberbank and Alfa Bank are poised to provide options to their patrons that would allow them to gain shares in a special fund enabling them to trade cryptocurrencies in major exchanges. Both banks mean to enter the crypto market with the aid of AddCapital, Group IB, and the National Settlement Depository.

Ana Ivanchuk, deputy chair of Sberbank Private Banking, said that it is their desire to provide their clients with a completely transparent means to enter the crypto market and invest in the products that interest them. The service will also comply with the regulations imposed upon this industry by the government, ensuring that these investors are protected by a legislative framework.

"Our goal is to speed-up the recognition of the digital assets as legitimate financial assets as soon as possible," said Anton Rakhmanov, Alfa Bank’s manager of private banking. The cryptocurrencies included in the portfolio are Bitcoin, Bitcoin Cash, Litecoin, and Ethereum. The technical solutions of this venture will be helmed by AddCapital, while the National Settlement Depository will act as a custodian.

Russia is incrementally taking steps in the crypto industry and this is but one of the many projects it is implementing. Last week, two private Russian firms and two state-owned organizations merged together to create MF Technologies. The partnership is valued at $450 million, with the funding to be allocated to blockchain and Internet-of-Things projects spanning a wide range of sectors across different markets.