Russia’s largest bank will accept Bitcoin, Ether and Tether’s USDT as loan collateral under a new crypto law that took effect Monday, though regulators have yet to approve the full range of digital assets for public trading.
Deputy Chairman Anatoly Popov told Russian news agency TASS that Sberbank plans to expand its crypto-backed lending program beyond Bitcoin to include Ether and USDT once the Bank of Russia approves them for public circulation on Russian exchanges. The central bank named all three assets in an August draft list based on market capitalization, daily trading volume, and at least five years of price history on foreign platforms.
What Sberbank has tested so far
“Sberbank has the infrastructure to work with these assets, and as they become available for trading, we will adapt our products accordingly,” Popov said, according to TASS.
Russia’s new crypto law, signed on August 4 and effective September 1, allows trading through regulated intermediaries while keeping domestic crypto payments prohibited. Market participants have until July 2027 to obtain licenses. The legislation gives banks a framework for offering crypto services for the first time, though the details of how that will work in practice are still being worked out by the central bank and financial regulators.
Sberbank has already tested the model. In December, it issued what it called Russia’s first Bitcoin-backed loan to mining company Intelion Data, holding the collateral through its own custody product. The loan amount was not disclosed. The bank expanded the program to other businesses in February, but the products still require central bank approval before they can be offered to the general public.
The rate, term, and conditions of the loans remain undefined. There is no timeline for when Ether or USDT collateral will be available. Popov described the plan as a direction the bank intends to move in, not a product ready to launch. Sberbank is simultaneously developing a digital wallet and targeting completion of its cryptocurrency custody facility by December 1, according to TASS. That custody infrastructure would be needed to hold ETH and USDT collateral safely alongside the Bitcoin it already manages.
The USDT sanctions problem
USDT adds a layer of risk that Bitcoin and Ether do not carry. Sberbank has faced full U.S. blocking sanctions since April 2022 and an EU asset freeze since July of that year. Tether has demonstrated its ability to freeze USDT linked to sanctioned entities, freezing more than $344 million in tokens in coordination with U.S. law enforcement and OFAC. The Bank of Russia warned in June that stablecoin issuers can seize tokens from lawful owners under unilateral restrictions without a court order.
That warning raises direct questions about the reliability of USDT as collateral for a sanctioned bank. If Tether can freeze tokens held by Sberbank customers, the collateral becomes worthless overnight. The central bank’s own consultation paper flagged this risk specifically, noting that stablecoin issuers operate under foreign legal frameworks that do not recognize Russian regulatory authority. For borrowers, the risk is that their collateral could be seized or frozen by a third party over which neither they nor Sberbank have any control.
The Bank of Russia included ETH and USDT on its draft list alongside Bitcoin, selecting the assets based on strict criteria: a minimum market capitalization threshold, consistent daily trading volume, and at least five years of price data on foreign exchanges. The list is not final. Regulators must complete a consultation period before the assets can be traded publicly through Russian intermediaries. Until that happens, Sberbank’s plans for Ether and USDT collateral remain conditional on regulatory approval that has not yet been granted.
Context: Russia’s regulated crypto market
The broader context is Russia’s attempt to build a regulated crypto market while keeping tight control over how digital assets are used within its borders. The law permits trading and investment but prohibits using crypto for payments inside Russia. It is a compromise that gives banks like Sberbank a role in the market without fully opening the door to decentralized finance. Russia’s digital ruble also begins a wider rollout on September 1, creating a parallel track for state-controlled digital payments.
The crypto law applies the same requirements to foreign stablecoins as domestic ones, which means USDT will be subject to Russian regulatory oversight once it gains approval for public trading. Market participants must obtain licenses by July 2027, and the central bank retains the authority to restrict or remove assets from the approved list at any time. The framework is designed to keep the market controlled, not open.
Globally, the move fits a pattern of traditional financial institutions entering crypto. Bank of America, Citi and Goldman Sachs recently formed a consortium to launch a regulated USD stablecoin. Major banks in Europe have added crypto custody and trading services over the past two years. Sberbank’s entry into crypto-backed lending is notable because it is happening in a sanctioned economy, where the usual banking infrastructure is restricted and digital assets offer an alternative channel for moving value.
Whether the program will scale beyond a handful of test loans depends on central bank approval, regulatory clarity, and whether Russian businesses are willing to pledge crypto as collateral. The legal framework is in place. The infrastructure is being built. But the gap between a regulatory framework and a functioning market is often wider than either side expects, and the timeline remains uncertain.
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