Sberbank and Alfa-Bank, two of the largest Russian banks, are working to offer investments in cryptocurrencies due to the high demand from private clients.
As reported by the russian newspaper Kommersant, these banks plan to test several private banking products based on cryptocurrencies, within the regulatory platform of the Russian bank.
The National Colonization Deposit (NSD) will also collaborate in this project, the IB Group will be in charge of security and the Althaus consultancy will take on the legal part.
Anna Ivanchuk (Deputy Head of Sberbank) said: “We want to offer our customers a completely transparent entry option into digital assets, it is totally consistent with the regulatory requirements that allow them to invest in an interesting product in Russia”
Alfa-Bank’s Anton Rakhmanov believes that digital assets will become a large part of the global economy, which is why they want to accelerate their adoption and introduce them into the legal field as quickly as possible.
One of the services in which they work is an exchange algorithm in cryptocurrencies that will adapt itself to the state of the market.
“The algorithms are deterministic, they do not contain hidden parameters, they also work well in traditional financial assets, this was a requirement of the associated banks.” explains Alexei Prokofiev (Managing Partner of AddCapital).
These algorithms are based on investment wallets that will finance 6 of the cryptocurrencies with the present highest market capitalization, among them Bitcoin, Ether and Litecoin. These operations will be carried out in cryptocurrency exchanges that have been audited and at the moment two names are known, Kraken and Bitstamp.
Alexei Prokofiev says: “The customer actually receives a unit of funds.The assets of the fund are stored using custody solutions and audited by the IB Group’s cyber security.The unit is liquid and it is possible to request a withdrawal to the client’s currency at any given moment.”
As indicated next, the project registration will be requested in the “regulatory safety room”, a process that should not exceed 45 days.
“The decision on the feasibility of introducing the tested products will be accepted by the Bank of Russia in cooperation with public authorities only if the development of risk management mechanisms are minimized.”
Sberbank and Alfa-Bank
Founded in 1841, Sberbank is the bank used by 70% of the Russian population and represents one third of the banking system in the Russian economy. It has more than 16 thousand branches and offers the widest selection of banking services.
Alfa-Bank, based in Moscow and founded in 1990, is a universal bank that performs all the main types of banking operations represented in the financial services market.