Page 14 - bne_Tech_07_2018

Blockchain & Cryptocurrency
July 2018 www.intellinews.com I Page 14
Two major Russian banks to offer crypto to their private banking clients
IntelliNews Pro
The private banking branches of Sberbank, Russia’s national savings bank, and Alfa-Bank, a major retail bank, will offer cryptocurrency- based investment options to their clients, East-West Digital News (EWDN) reports.
The new products will combine six of the most frequently traded cryptocurrencies, including Bit- coin, Ethereum, Bitcoin Cash, and Litecoin.
The cryptocurrency composition of the portfo-
lio will be reviewed quarterly. The weights of the digital assets will change dynamically based on a specially designed algorithm, the aim of which is to provide “significantly higher yields than indi- vidual digital assets or their indexes.”
“The client will practically receive a share in the fund. The assets of the fund are stored using cus- tody solutions, while their security is ensured by Group IB [a major Russian cybersecurity company]. The share is liquid, which means that the client can request its equivalent in fiat money anytime,” ex- plains Alexei Prokofiev of AddCapital, who heads the working groups in charge of preparing the project.
Only audited crypto exchanges, such as Bitstamp and Kraken, will be used for trading, said Prokofiev.
After tests on the Bank of Russia’s regulatory “sandbox” platform, the products should be made available shortly to the retail clients of the two banks.
“We aim to offer our clients an absolutely trans- parent entry point to digital assets, fully meeting the regulatory requirements and allowing them to invest in an interesting product,” Kommersant quoted Anna Ivanchuk, Deputy Head of Sberbank Private Banking, as saying.
Sberbank, however, is not blindly embracing cryp- tocurrencies. Earlier this month, the bank’s presi- dent German Gref — once known for his cryptoe- nthusiasm — said in an interview to Kommersant that he does not buy cryptocurrency any more. “And I wouldn’t recommend to do so to those
who don’t gamble at the casino,” he added.