Russia’s largest bank to issue digital financial assets after approval

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

The bank announced Thursday that businesses will be able to transact on its blockchain platform within a month.

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

The shift to digital assets comes amid Russia’s invasion of Ukraine, as the West responds with tough economic sanctions against the country.

Sberbank’s announcement speaks of possible benefits for the market. Businesses will be able to issue their own DFAs, which “will allow them to attract investment to the market,” he says.

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

“We are just beginning 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 early as 2020, the bank had announced its intention to launch a stablecoin – to be called Sbercoin. As reported in January last year, Sberbank also sought central bank approval for a blockchain-based financial platform.