Sberbank issues Russia’s first bitcoin-backed loan in pilot deal

Sberbank, Russia’s second-largest bank, issued the country’s first bitcoin-backed loan to one of its largest bitcoin miners, calling the transaction a pilot and suggesting it was keen to issue more in the future

“We believe this product will be relevant not only for cryptocurrency miners, but also for companies that own cryptocurrencies,” the bank said in a statement. It did not disclose the loan amount.

The bank said it used its own crypto custody product, Rutoken, to hold the bitcoin used as collateral for the crypto loan. “The loan was secured by digital currency mined by [Intelion Data]. This guarantees the assets’ safety during the loan period,” Sberbank said.

According to RBC Crypto, IntelionData CEO Timofey Semenov said the loan is an important practical example for the industry and an indicator that the market is reaching a new level, which, if proven effective, could be scaled up and used in the Russian mining industry.

Anatoly Popov, Sberbank’s deputy chairman, said the bank already offers clients structured bonds and digital financial assets with investments in bitcoin, ether ETH$3,017.33 and cryptocurrency baskets, the Russian news outlet added. Popov also said the bank is currently testing decentralized finance (DeFi) instruments and supports the gradual legalization of cryptocurrencies within the Russian legal framework.