SberBank’s Investment Strategy in the Cryptocurrency Market: Which Coin Will They Choose?

Thomas Seattle
Thomas Seattle Crypto
4 Min Read

One anti-cryptocurrency statement after another comes from banks and governments. Undoubtedly, things seem to be going a little differently in Russia due to the pressure on Sberbank, but which coin does Sberbank want to invest in? We have researched this process for you.

Sberbank, Russia’s largest bank and a leading global financial institution, announced a new DeFi platform based on an altcoin project.

Will Continue To Work On The Defi Platform!

Sberbank stated that it intends to build the DeFi platform on this alternative cryptocurrency. In fact, this was not a surprise, as working on cryptocurrencies was considered the most logical way to overcome the economic pressure on Russia.

Sberbank announced plans to develop a new DeFi platform based on Ethereum (ETH). The renowned bank will launch the DeFi product in the testing phase in a few months. 

Konstantin Klimenko, product manager of Sber’s Blockchain Lab, said that DeFi systems could transform the traditional banking services sector.

People have been talking about it in Russia for a long time.

Sberbank expects to test its DeFi platform by May 2023, local news agency Interfax reported Feb. 3. According to Klimenko, Sberbank’s DeFi platform, which is currently being tested in private beta, will be fully operational and allow users to make their first transactions by the end of April.

sberbank's investment strategy in the cryptocurrency market: which coin will they choose?

Based on MetaMask

The CEO explained that the blockchain platform will be compatible with Ethereum and will allow customers to move their assets using large wallets such as MetaMask. In addition, Klimenko stated that users will be able to transfer their assets from other platforms.

The blockchain manager added that Sberbank’s DeFi technology aims to make the Russian DeFi ecosystem one of the best in the world. He also expressed optimism that DeFi systems could transform the traditional banking services sector.

Modernizing infrastructure from the ground up

This announcement is in line with Sberbank’s previously announced intention to enable DeFi applications within its banking infrastructure. In November 2022, Sberbank announced several new features for its proprietary blockchain technology, including compatibility with smart contracts and applications from the Ethereum network.

Russia has not yet enacted cryptocurrency laws, so it is unknown how the future platform will be regulated. According to Anatoly Aksakov, chairman of the Duma’s Financial Markets Committee, Russia will “definitely” introduce crypto regulations in 2023.

What Kind of Cryptocurrency Policy is Russia Introducing?

Due to repeated delays in registration by Russia’s central bank, Sberbank has had difficulty adopting some blockchain technologies in recent years. The bank originally planned to launch its cryptocurrency platform in 2021, but finally received approval from the Bank of Russia in the spring of 2022. With a 50+1 stake, the Russian government is Sberbank’s largest shareholder.

On Feb. 2, Alfa Bank, one of Russia’s largest private banks, became the fourth financial institution approved to issue cryptocurrencies in the country, alongside Sberbank, state-backed tokenization platform Atomyze and fintech startup Lightspeed.

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I graduated from Lancaster University and currently working in the financial services industry. I’m a goal-driven journalist who tracks down personal and corporate finance stories and delivers on deadline and a reporter/editor with extensive experience in newspapers, magazines and the internet in public and private markets, equity and debt, M&A, banking, fintech areas.
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