Lots of banks around the world have been treating crypto investments with enhanced caution. Some banks went as far as to advise their customers not to buy them and other even froze the customers’ cards whenever they tried to purchase cryptos on various exchanges. Two of the most significant banks in Russia, Sberbank and Alfa Bank, are planning to test a few crypto products for their private customers. The crypto products include exchange algorithms.
About Alfa Bank and Sberbank
Alfa Bank is one of the largest private commercial banks in Russia, and it provides services to more than 360,000 active corporate customers and more than 14.2 million retail clients.
Sberbank is a Russian bank owned by the state, and the financial services provider has its headquarters in Moscow just as Alfa Bank. Back in 2014, Sberbank was the largest bank in Russia and Eastern Europe.
These exchange algorithms operate based on an investment portfolio which includes the six most trusted cryptos on the market. The four cryptos named in the report by Kommersant Newspaper include Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). The remaining two cryptos still have to be confirmed by the two banks.
The algorithms will adapt according to the market situation and the cryptos from the portfolio will be reviewed once every quarter. Both banks will offer the products based on the current regulatory platform of the Bank of Russia.
“We want to offer our clients a completely transparent version of the entrance to digital assets that fully meets the regulatory requirements that will allow them to invest in an interesting product in Russia,” said the Deputy Head of Sberbank Private Banking, Anna Invanchuk.
“Our goal is to accelerate the adoption of a decision on the recognition of the CFA investment assets and introduce them into the legal field as quickly as possible,” Alfa Bank’s Anton Rakhmanov stated.
The importance of the banks’ decision to pilot crypto investment products is high, and this shows that institutional investors are cautiously showing increasing interest in the crypto space and they begin to see crypto as an alternative investment.