Russia's Biggest Bank Lends Against Your Crypto Assets

Russia's largest bank, Sberbank, is planning to accept Bitcoin, Ether, and Tether's USDT as collateral for loans. According to deputy chairman Anatoly Popov, this move is part of a new framework signed into law by President Putin in August.

The framework allows borrowers to pledge their cryptocurrencies as security for loans, but they cannot use them to buy goods or services within Russia. This means that Sberbank is treating these coins as assets, not currency.

The bank has already completed one pilot loan last December, secured by the coins mined and held in Sberbank's own custody. However, the plan is still contingent on regulators clearing each asset for regulated public trading.