Sber to expand crypto lending, set to accept USDT and Ether as collateral

Sber’s expansion plans

Sber intends to update its current crypto lending products in response to the upcoming crypto law, which grants a clearer regulatory structure for digital assets in Russia. Popov noted that the bank will gradually extend its offerings, introducing USDT and Ether as collateral options once the Bank of Russia authorizes their public trading.

Currently, Sber provides Bitcoin-backed lending services. By adding Tether and Ether, the bank aims to diversify collateral options for customers who use crypto assets to secure loans. These updates are expected to take place as the legal environment for digital assets in Russia evolves and as the necessary regulatory approvals are granted.

Regulatory landscape in Russia

Russia is transitioning to a regulated crypto market following the signing of a new law by President Vladimir Putin on August 4. The core provisions of this legislation are scheduled to take effect on September 1. The law designates the Bank of Russia as the authority responsible for determining which crypto assets may be publicly traded on regulated exchanges within the country.

On August 11, the Bank of Russia proposed allowing Bitcoin, Ether, and USDT for regulated trading. The central bank stated that these assets satisfy requirements such as sufficient market capitalization, stable trading activity, and more than five years of price history on international exchanges.

Mini dictionary: Sber is the largest bank in Russia, majority-owned by the Russian government, providing financial services including retail and corporate banking, investment, and digital finance.

Perspective on the digital ruble

While Sber is moving forward with broader crypto collateralization, its approach to the digital ruble, Russia’s central bank digital currency (CBDC), has been more reserved. Sber’s Chief Financial Officer Taras Skvortsov recently commented on market interest in the CBDC ahead of its countrywide launch on September 1.

Skvortsov stated that outside the Bank of Russia, there is minimal enthusiasm for the digital ruble, with retail, corporate, and financial sector clients generally showing no strong demand for the CBDC.

The digital ruble is slated for a gradual introduction, but Sber, as a leading state bank, has noted lukewarm reception among its clients, reflecting uncertainty regarding the CBDC’s adoption on a broader scale in Russia.