Sberbank, Russia’s largest bank, said it has become the first bank in the country to receive approval to custody Bitcoin.
In a statement issued Wednesday, the bank said the Bank of Russia gave it permission for "digital currency record-keeping" and to facilitate the transfer of such assets. The approval covers Bitcoin as well as smaller cryptocurrencies, according to the bank.
Sberbank plans to use existing banking channels
The bank said customers will be able to conduct cryptocurrency transactions through SberBank Online, SberInvestments, and the SberBusiness online banking platform. It also said no new apps or platforms will be launched for the service.
"For users, this means that digital currency transactions are moving into familiar banking interfaces — complete with standard customer identification, transaction monitoring, and reporting," the bank said in its statement.
Before a broader rollout, the service will first be offered to a limited number of customers, Sberbank added.
Russia continues to build out digital asset rules
The development comes as Russia moves ahead with regulating digital assets. Earlier this month, President Vladimir Putin signed a law that formalized regulation for digital currencies and digital rights in the country.
Sberbank had said in July that it planned to debut a Bitcoin and crypto wallet, along with digital asset custody services, by December. Also in July, the Bank of Russia published draft regulations for crypto trading, while the State Duma prepared a comprehensive framework for digital asset regulation this year.
Crypto payments remain banned in Russia
Despite the custody rollout, digital assets still cannot be used as a means of payment or as legal tender in Russia. The use of crypto for payments has been prohibited in the country since 2022.
The report also noted that Putin has spoken favorably about Bitcoin in the past, saying at one point that the leading cryptocurrency cannot be stopped.
The story was first published by Bitcoin Magazine and written by Mathew Di Salvo.