Russia’s Banking Giant Doubles Down on Bitcoin—Launches Crypto-Backed Bonds

In a move that’d make Satoshi smirk, Russia’s largest bank is diving headfirst into crypto—issuing bonds tied to Bitcoin’s volatile magic. No gold-standard nostalgia here.

Wall Street’s old guard won’t like this one: a state-backed financial titan just sidestepped tradition to bet on decentralized money. The irony’s thicker than a bull market order book.

One cynical footnote? These bonds might be the only Russian asset not getting sanctioned these days. The markets—and the Kremlin—are watching.

Sberbank’s Bitcoin-Linked Bond Offer

According to the bank’s press release, the bonds are for a limited group of investors at first. They plan to make them available on the Moscow Exchange soon. This MOVE means more transparency and the chance for more people to get involved.

If bitcoin goes up, bondholders benefit. If the dollar goes up against the ruble, bondholders get a bit more too. It’s a double play on two markets, crypto and currency.

Regulatory Backdrop And Investor Access

Based on reports, Russia still bans cryptocurrencies for everyday payments, but they’re allowed for cross-border deals. In early June, the Central Bank of Russia gave financial firms the green light to sell crypto-related investments to qualified investors.

That change paved the way for Sberbank’s new bonds. No one needs to leave Russia’s financial system to invest in Bitcoin this way, keeping it all above board and legal.

Sberbank got a digital asset license from the Central Bank in 2022. Since then, they’ve tokenized assets like Gold and real estate. They opened their platform to retail investors in 2023 and handled billions of rubles in transactions.

The bank even launched a blockchain network that works with Ethereum. That network started limited testing in 2022 and opened to the public in early 2023. Now, they’re adding Bitcoin futures on June 4 through their SberInvestments platform. This comes just as the Moscow Exchange rolls out its own crypto-based trading tools.

Around the world, big banks are moving into crypto. In the US, names like JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup are working on a stablecoin project to speed up cross-border payments. In Hong Kong, HSBC launched a crypto settlement product.

BNY Mellon is putting money into blockchain to hold digital assets. In March, BlackRock created a tokenized fund on ethereum and then added one on Solana. Sberbank’s bond ties into this trend, showing that major banks still see value in blending traditional finance with crypto tools.

Featured image from Worldkings, chart from TradingView