Russia's largest bank to issue digital financial assets following approval

Russia’s largest bank, Sberbank, will soon start issuing and exchanging digital financial assets (DFA).

The bank announced on Thursday that companies will be able to make transactions on its blockchain platform one month from now.

Sberbank got the green light from Russia’s central bank a month after  Atomyze Russia was allowed to exchange digital assets, according to Reuters.

The move to digital assets comes in the midst of Russia’s invasion of Ukraine, as the West responds with strict economic sanctions to the country.

Sberbank’s announcement speaks of possible benefits to the market. Companies will be able to issue their own DFAs, which will “enable them to attract market investments,” is states.

They will also be able to acquire CFAs, allowing them to “invest their currently idle funds to generate income.”

“We are just starting our work with digital assets, realizing that further development requires adaptation of the current regulatory framework,” said Sergey Popov, director of the Transaction Business Division at Sberbank.

As far back as 2020, the bank had announced its intention of launching a stablecoin — to be called Sbercoin. As reported in January last year, Sberbank had also sought approval from the central bank for a blockchain-based financial platform.

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Catarina is a reporter for The Block based in New York City. Before joining the team, she covered local news at Patch.com and at the New York Daily News. She started her career in Lisbon, Portugal, where she worked for publications such as Público and Sábado. She graduated from NYU with a MA in Journalism. Feel free to email any comments or tips to [email protected] or to reach out on Twitter (@catarinalsm).