Sberbank, the largest banking establishment in Russia, is ready to operate its decentralized finance (DeFi) platform in May. According to a report on February 3 by the Russian news agency Interfax, the majority of Russian state banks plan to roll out the project in several steps based on statements by the Product Director of the Sberbank Blockchain Laboratory, Konstantin Klimenko.
Speaking at the 7th Perm Economic Congress on Friday, Klimenko stated Sberbank’s mission to make Russia a leading country in DeFi operations. He later commented on the highly-anticipated project, saying it’s in a closed beta testing phase, with open testing starting in March.
“From March 1, we are moving to the next phase, it will no longer be a beta test but an open test,” he said. “By the end of April, the platform will be fully open, and then some commercial operations will be possible.”
Klimenko also stated that Sberbank’s DeFi platform will start with compatibility only with the MetaMask wallet. In addition, they plan to integrate the project with the Ethereum blockchain, allowing for the smooth transfer of smart contracts and other projects in the Ethereum ecosystem.
Sberbank and Blockchain Ventures
Sberbank is the largest bank in Russia and the third largest bank in Europe, with assets under management in 2021 remaining at $559 billion. That said, the launch of the DeFi platform represents only Sberbank’s latest foray into the blockchain space. In March 2022, the Moscow-based lender obtained a license from the Bank of Russia to operate as a digital asset exchange, with the right to issue its own digital tokens.
Three months before this development, Sber Asset Management, the investment branch of Sberbank, announced the launch of the first blockchain exchange-traded fund (ETF) in Russia. This fund provides investors with a portfolio of leading blockchain companies like Coinbase and Galaxy Digital while protecting them from the severe effects of crypto market volatility.
Cryptocurrency in Russia
Russia’s stance on cryptocurrencies is quite ambiguous as there are many disparities between various financial regulatory institutions.
For example, the Bank of Russia, the country’s central bank, has repeatedly expressed skepticism about cryptocurrency.
In January 2022, the country’s top bank released a report recommending an immediate ban on crypto and all related activities, for example, mining, because it described cryptocurrency as a pyramid scheme driven by speculation. In fact, the Bank of Russia only licenses digital exchanges to issue and trade digital assets other than cryptocurrency.
On the other hand, the Ministry of Finance of Russia recognizes a lot of potential in the crypto space. He decided to take a friendlier approach, amending the Digital Currency Bill to include regulations on cryptocurrency mining, investment, and trading in Eastern European countries.
As time progresses, Russia must take a clear position on cryptocurrency operations, balancing financial concerns with the potential benefits of this new technology. Meanwhile, the crypto market remains up with a total market cap of $1.03 trillion based on data from TradingView.
Crypto Market Capitalization at $1.03 Trillion | Source: Chart on TradingView.com
Featured Images: Forbes, Charts from TradingView