Russia's Sberbank Offers Custody Services for Russian Crypto Assets

In a significant move, Russia's largest lender, Sberbank, has announced its intention to offer custody services for Russian cryptocurrency assets. This development comes as the state-owned bank seeks to establish itself as a leading player in Russia's burgeoning digital asset market.

The news was revealed on Thursday by Anatoly Pronin, executive director of Sberbank's alternative payment solutions division. According to Pronin, the bank has been working on proposals for regulating crypto assets in Russia and has sent these plans to the central bank for consideration.

Pronin stated that Sberbank's proposals would see cryptocurrency assets regulated in a similar manner to assets held in bank accounts. This means that crypto assets would be safeguarded on behalf of clients, allowing them to be frozen if law enforcement authorities suspect wrongdoing. However, this regulation also enables the practice of carrying out transactions more easily and protects client accounts from hacking.

According to Gleb Zemskoy, director of the development of blockchain technology and digital currencies at Insight Finance, no fund or crypto user can operate without custody services. "The custodian is the backbone of the world's economy in terms of cryptocurrencies," Zemskoy said. "And at the moment, it is largely in the hands of private foreign companies, which indicates a huge risk."

Zemskoy's comments highlight the importance of having reliable custody services for crypto assets. By establishing its own custodian services, Sberbank can provide clients with an additional layer of security and stability.