VTB Bank Ventures into Cryptocurrency
VTB Bank, Russia’s second-largest bank, is set to launch cryptocurrency services. The bank, which is mainly owned by the Russian state, ranks among the world’s top 150 banks, boasting total assets exceeding $35 trillion and serving nearly 25 million active customers. Their goal for the next year is to increase this number to 35 million.
By next year, VTB aims to offer cryptocurrency services to clients with portfolios exceeding $1.3 million or annual incomes above $649,000. It is estimated that there are between 20,000 and 40,000 VTB Bank clients who meet these requirements.
Andrey Yatskov, head of brokerage services at VTB, recently stated that many clients have shown considerable interest in crypto products. “As we have observed, actual cryptocurrencies will be purchasable through our brokerage accounts,” he added.
Crypto transactions have been fully regulated by Russia, with several major Russian companies, including Sberbank, entering the market. The Russian Central Bank permits banks within the country to offer crypto derivative products.
Yatskov noted the high interest among their clientele and the global trend towards cryptocurrencies, stating that they plan to commence providing these services by next year.
Central Bank of Russia and Cryptocurrency
At the start of the week, Vladimir Chistyukhin, the bank’s first deputy chairman, indicated plans to ease current restrictions on cryptocurrencies. Shortly thereafter, VTB Bank announced its intent to launch crypto services next year, marking a significant strategic move.
When the war commenced in 2022, many Russian oligarchs converted their assets into cryptocurrencies and relocated them to Dubai. In light of the global freezing of Russian assets, President Putin views cryptocurrencies as a secure alternative. Although access to cryptocurrencies is limited, many Russians are expected to migrate their assets to cryptocurrencies via bank assurance to safeguard against potential losses of the local currency and ensure security.
At the time of writing, Bitcoin is priced at $92,800. Following President Putin’s assertive remarks directed at Trump, attention is now focused on the latter’s response.