Russia's Sberbank seeks to expand crypto-backed loans with ETH and USDT, cool to digital ruble

Russia's largest bank Sberbank (Sber) is seeking to expand crypto-backed lending by recognising ether and Tether's USDT as collateral, following bitcoin.

On Aug. 30, blockchain media outlet Cointelegraph and TASS and other foreign media reported that Sberbank plans to adjust existing products and gradually broaden the assets it handles in line with the implementation of Russia's new crypto legislation.

Anatoly Popov (아나톨리 포포프), a deputy chairman at Sber, said the bank will overhaul products now in operation to fit the new system and gradually expand the scope of services. He said actual expansion of collateral will take place after the Bank of Russia allows public trading of the assets. Popov said Sber plans to add ether and USDT to its collateral assets alongside bitcoin.

The move comes as Russia begins introducing a regulated crypto market. Russia is seeking to launch a regulated crypto market under a new law signed by President Vladimir Putin on Aug. 4. Key provisions take effect from Sept. 1. The law stipulates that the Bank of Russia will decide which cryptocurrencies can be traded on regulated exchanges.

The Bank of Russia on Aug. 11 named bitcoin, ether and USDT as candidates for trading on regulated exchanges. The central bank judged that these assets met requirements such as market capitalisation, trading volume and at least 5 years of price history in overseas markets. That links Sberbank's plan to expand collateralised lending directly to the central bank's permitted scope.