Banks in Russia to Provide Crypto Services

Banks in Russia to Provide Crypto Services

Two of Russia’s largest banks, Alfa Bank and Sberbank will be offering crypto portfolios to trade six famous coins on premium exchanges like Bitstamp and Kraken. The banks have partnered with the AddCapital investment fund, Group IB, and the National Settlement Depository. Sberbank is state-owned and manages the paychecks of government employees while Alfa Bank is the largest private bank of the country.

It was reported that AddCapital would be providing the technical solution for the upcoming project. A client’s portfolio will include six of the most popular digital currencies like bitcoin, bitcoin cash ethereum, and Litecoin.  The combination of the coins will be revised four times in a year, and a trading algorithm would equalize its propositions.

CEO of AddCapital investment fund, Alexey Prokofyev, said, “The investment process will see investors purchase a share of the fund as the shares are liquid, and a client can send them for fiat currencies any time.” It was also informed that National Settlement Depository which is also a section of the Moscow Exchange Group would serve as the custodian. Currently, it is speculated that the portfolio testing period will be somewhere around 45 days.

Manager of Alfa Bank’s private banking branch, Anton Rakhmanov, said, “Our goal is to speed-up the recognition of the digital assets as legitimate financial assets as soon as possible.” Deputy Chairman of Private Banking – Sberbank, Ana Ivanchuk, said, that the bank would offer a completely transparent platform for its users to invest in digital currencies. The product will work in compliance with the set rules and regulations to provide Russians with a chance to invest in their favorite virtual coin.

The condition of Russia crypto space

The local crypto market is growing rapidly with increase in the demand of professionals that understand the ins and outs of the technology.  Indicators reveal that crypto labor market in Russia is expanding at an astonishing rate. A few months ago, RF Ministry of Labor and Social Protection was requested by the leaders of the sector to induce an official holiday for professionals of the field. The department has not granted any such permission yet but has promised to take a close look at the matter.

Recently, LinkedIn, the popular social network platform, informed that from mid-May 2018, 4,500 postings on the website had included the keywords: Bitcoin, cryptocurrency, and blockchain. The numbers are 151 percent greater than 2017’s statistics. Last December, it reported an increase of more than 500 percent in the listing of skills important for digital currencies.

The decision taken by some of the prominent financial institutions of the country gives us a hint of the positive outlook towards crypto coins. It was earlier mentioned that Russia is eager to develop a fiat virtual coin for battling sanctions from UN and US. It is hoped that citizens will open to a reliable and legal platform to invest money in cyber coins. Overall, the largest country of the world might become the biggest crypto supporters in the upcoming years.