Sberbank, Russia’s largest bank, is making progress with its plan to launch a decentralized finance (DeFi) platform. The bank intends to trial the product in the next few months, with open trials expected to be launched by May 2023. Sberbank’s Blockchain Lab product director, Konstantin Klimenko, announced the news, stating that the platform will be fully open by the end of April.
Compatibility with Ethereum Blockchain
The DeFi platform, which is currently being tested in private beta, will be compatible with the Ethereum blockchain. This means that customers can use popular wallets such as MetaMask to move their assets and transfer them from other platforms. Klimenko stated that the platform aims to become a prime DeFi ecosystem in Russia and expressed confidence in DeFi systems being able to displace traditional banking services.
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Regulation and Previous Delays
The future regulation of the platform remains unclear, as Russia has yet to establish digital currency regulations. However, the head of the Duma’s Committee on Financial Market, Anatoly Aksakov, stated that Russia will adopt crypto regulations in 2023. Sberbank has faced challenges in launching blockchain tools in the past, with multiple delays of registration by the Russian central bank. The bank finally received approval from the Bank of Russia in spring 2022 and is now ready to launch its DeFi platform.
Alfa Bank Joins DeFi Market
Recently, Alfa Bank became the fourth financial institution in Russia to be allowed to issue digital assets, joining Sberbank, Atomyze, and Lighthouse. Sberbank has previously disclosed plans to enable DeFi applications on its infrastructure, with the addition of compatibility with smart contracts and Ethereum applications.
Sberbank is making significant progress in its plan to launch a DeFi platform, with open trials expected to start in May 2023. The platform will be fully open by the end of April, allowing users to conduct commercial transactions. The DeFi platform will be compatible with the Ethereum blockchain and will aim to become a leading DeFi ecosystem in Russia. Despite the lack of digital currency regulation in Russia, Sberbank is confident that DeFi systems can displace traditional banking services.
