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Sberbank plans to expand crypto-backed loans with ETH and USDT collateral

The Bank of Russia added ETH and USDT to a draft list of cryptocurrencies that could trade publicly on Russian exchanges, and Sberbank says it will update its loan products before expanding the assets it accepts.

Reported · Written up by our desk · Regulation

Sberbank plans to expand its crypto-backed lending program beyond bitcoin by adding ether (ETH) and Tether’s USDT as collateral, pending regulators allowing the assets to circulate publicly, CoinDesk reports.

According to CoinDesk, the Bank of Russia recently included ETH and USDT in an August draft list of cryptocurrencies approved for public trading on Russian exchanges. The central bank selected the tokens based on market capitalization, average daily trading volume, and at least five years of price history on foreign platforms.

CoinDesk says Sberbank will adapt its existing products under Russia’s new crypto rules, Deputy Chairman Anatoly Popov told TASS. The bank has already tested the model, including issuing what it called Russia’s first bitcoin-backed loan to miner Intelion Data in December, while holding collateral through its in-house custody product.

CoinDesk also notes that USDT could introduce additional sanctions risk because Tether can freeze USDT linked to entities under sanctions, and Russia’s central bank has warned that stablecoin issuers can seize tokens from lawful owners under unilateral restrictions without a court order. Russia’s new crypto law takes effect Sept. 1, and crypto payments inside Russia remain prohibited.

Latest closeBitcoin $77,877.93 ▲0.1%|Ethereum $2,440.83 ▼0.1%

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