Bitcoin Exposure with a Twist: Sber Unveils Bitcoin-Backed Bond
A Bitcoin-linked bond instrument that tracks the price of the cryptocurrency and the dollar-to-ruble exchange rate was introduced by Sber, the biggest commercial bank in Russia. Sber intends to launch the product on the Moscow Stock Exchange in the future, and eligible investors can already purchase it over the counter.
A variety of eligible investors will benefit from the listing’s transparency, liquidity, and ease, Sber continued. The structural bond may enable holders to profit from the shift in the value of the dollar relative to Bitcoin and the strengthening of the dollar versus the Russian ruble, according to Sber.
Sber Bank Offers Safe Crypto Exposure Without Unregulated Platforms
According to the bank, investors don’t have to rely on cryptocurrency wallets or unregulated platforms because all transactions are conducted in rubles within Russia’s regulatory framework. Starting with a Bitcoin futures product, which the bank stated should be listed on June 4 once the Moscow Exchange formally introduces the product, Sber said it will also provide exchange-traded products that give exposure to cryptocurrency on its SberInvestments platform.
Is a New Era for Crypto in Russia? Sber and T-Bank Seize Regulatory Opportunity
Sber’s action follows Russia’s central bank’s May 28 approval for financial institutions to sell specific cryptocurrency financial products to accredited investors. However, the Bank of Russia‘s announcement included a crucial clause prohibiting financial institutions from directly offering cryptocurrency.
In this context, on the same day, T-Bank, a Moscow-based financial institution that was previously known as Tinkoff Bank, introduced an investment product that was correlated with the price of Bitcoin. The product, which was issued by the Russian state-backed tokenization platform Atomyze, was referred to by the bank as a smart asset.
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