Russia’s Largest Bank Wants Bitcoin and Ethereum as Collateral

Sberbank, Russia's largest bank, aims to accept Bitcoin (BTC), Ether (ETH) and Tether (USDT) as collateral for loans, according to deputy chairman Anatoly Popov. The move comes as Russia's digital currency law, which goes into effect on September 1, remains vague on the use of cryptocurrencies for payments within the country. While businesses can pledge Bitcoin to banks, they cannot yet buy coffee with crypto.

Sberbank is preparing for the rule change by already handling digital assets, but the expansion depends on approval from the Central Bank. President Vladimir Putin signed the crypto law on August 4, and the Bank of Russia released its first approved list of coins a week later. Bitcoin, Ether, and USDT passed the regulator's criteria, which include size, high daily turnover, and at least five years of price history on foreign exchanges.

However, crypto cannot be used for payments within Russia, except for exporters and importers in foreign trade. With an interest rate of 14% as of August 28, money is expensive in Russia, explaining the demand for crypto-backed loans. The bank has not disclosed loan-to-value ratios, interest rates, or a launch date for the service, but expects to close a crypto-backed lending pilot by December 2025 and aim for a digital depository by December 1.

The main difference between Bitcoin and USDT is their valuation, with USDT trading at $0.9999. If a borrower defaults, Sberbank would need to sell those assets, which is problematic given the illegality of selling crypto in Russia.