Sberbank Targets Regulated Crypto Infrastructure Launch by Year-End

Sberbank, Russia's largest bank, is building a regulated cryptocurrency trading and custody infrastructure by the end of this year. The initiative underscores Moscow's efforts to integrate digital assets into the traditional financial system.

The bank plans to have a cryptocurrency trading infrastructure and a 'digital depository' in place by December 1st. This follows the Federation Council's approval of a bill governing crypto transactions conducted via licensed brokers, exchanges, asset managers, and depositories.

The digital depository will record customers' ownership rights to cryptocurrencies, with much of the transaction processing occurring 'off-chain', outside the underlying blockchain network. This model mirrors traditional securities infrastructure, where ownership records and transfers are handled within supervised systems.

Sberbank also expects to operate 'hot wallets', which keep assets accessible for operational needs. The bank's timeline is ahead of a new regulatory regime for crypto trading, custody, and settlement that takes effect on September 1st.