The two largest Russian banks are testing several crypto portfolios for their private banking based on digital financial assets within bank’s regulatory sandbox.
Sberbank and Alfa Bank- largest players in Crypto banking market
Under central bank supervisory, Alfa Bank and Sberbank are offering their clients shares in a special fund that will be trading the six cryptocurrencies on major exchanges including Bitstamp and Kraken. Therefore, both the banks showed their interest in such projects that largely in demand. Since to offer fully transparent solutions for investment assets.
Anna Ivanchuk, the deputy head of Sberbank said about the new investment products;
“We’d like to offer our clients an absolutely transparent way to invest in digital assets. However, with a full compliance with regulations that will let them invest in the product they are interested in Russia”.
Anton Rakhmanov, manager of Alfa Bank’s private branch also said;
“Our goal is to speed-up the recognition of the digital assets as legitimate financial assets as soon as possible”.
Firstly, Sberbank is the main state-owned bank headquartered in Moscow, responsible for processing government employee paychecks. Earlier in 2014, the study says that the banks hold a third largest place in Europe.
Alfa Bank, the largest private bank headquartered in Moscow are operated over 7 more countries. However, the bank offers financial services to over 360,000 customers and around 14.2 million retails clients. Moreover, both, Sberbank and Alfa Bank are planning to enter crypto exchange world with the National Settlement Depository, AddCapital investment fund, and Group IB.
In addition, the investment fund, AddCapital which participated telegram tokens pre-sales is now managing the technical solution for the project. As mentioned, the portfolios will add the 6 cryptocurrencies including BCH, BTC, LTC, and ETH. Since, four times a year, the coins combinations will be examined and the proportions of coins will be balanced by a trading algorithm.
Alexey Prokofyev CEO of AddCapital said;
“The shares are liquid and a client can send them for fiat currencies any time”.
The part of Moscow Exchange Group, National Settlement Depository will be a custodian. Meanwhile, a process of testing portfolios will take 45 days of period and thus the exact dates have been mentioned.
Lastly, the two major banks Sberbank and Alfa Bank decision to pilot the crypto portfolios which indicates that institutional investors are gradually heading towards crypto evolution.