• 18 June, 2024
News

Russia’s Largest Bank Gets Ready to Launch Decentralized Platform By May

Sberbank, the largest bank in Russia, is set to launch its decentralized finance (DeFi) system by the end of April this year. An open testing phase is scheduled to start in March, according to an announcement made by Konstantin Klimenko, the product head of the blockchain laboratory at the bank.

The DeFi platform will be compatible with Ethereum and support crypto wallets such as MetaMask. It will also allow users to transfer their crypto assets from other platforms. Klimenko believes that DeFi has the potential to replace traditional banking services in the future.

This news comes shortly after Sberbank’s announcement that it would issue gold-backed digital financial assets (DFAs). Solfer, a diversified metals seller and manufacturer, became the first investor to obtain these assets. 150,000 DFAs are available for purchase until July 2023; however, investors should note the “high risks” associated with these types of investments, such as illiquidity.

Alexander Vedyakhin, first deputy chairman of Sber’s executive board, suggested that gold-backed DFAs could be a good alternative to more traditional investments due to international sanctions being imposed on Russia due to its Ukraine invasion.

Despite this attitude about DFA investments, Russian President Vladimir Putin made it illegal for them to be used in any capacity whatsoever as a payment mechanism in July 2022 by signing a bill into law.

In spite of these difficulties for DFA investors, it would seem that Sberbank’s overarching objectives for its decentralized finance platform remain robust. This platform might provide many new options for Russians who are interested in investing in bitcoin and other kinds of digital money.

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