Sberbank, Russia’s largest bank, is gearing up to launch its decentralized finance (DeFi) platform by May of this year. This project represents the bank’s latest venture into the blockchain space, with a focus on becoming the leading DeFi player in Russia.
According to a report by Interfax, the Russian news agency, Sberbank’s DeFi platform will be rolled out in multiple steps with the product director of the bank’s blockchain laboratory, Konstantin Klimenko, making an announcement about the project at the 7th Perm Economic Congress. Klimenko stated that the platform was in its closed beta testing phase and that open testing would begin in March.
Klimenko went on to explain that the DeFi platform would start by only being compatible with the MetaMask wallet. Additionally, the bank plans to integrate the project with the Ethereum blockchain, allowing for the seamless transfer of smart contracts and projects within the Ethereum ecosystem.
Sberbank is Russia’s largest bank and the third largest in Europe, with assets under management in 2021 reaching $559 billion. This announcement of a DeFi platform follows the bank’s license from the Bank of Russia in March 2022 to operate as a digital asset exchange, with the ability to issue its own digital token.
Sberbank’s investment branch, Sber Asset Management, made headlines three months prior to this development by announcing the launch of Russia’s first blockchain exchange-traded fund (ETF). This fund provides exposure to a portfolio of leading blockchain companies, such as Coinbase and Galaxy Digital, while protecting investors from the volatility of the cryptocurrency market.
The DeFi space has been rapidly growing in popularity in recent years, with decentralized finance protocols offering a variety of financial products and services, such as lending and borrowing, stablecoins, and yield farming, to name a few. DeFi eliminates the need for intermediaries, such as banks and financial institutions, and operates on a decentralized and open-source network.
Sberbank’s entrance into the DeFi space is a significant development for the industry, as the largest bank in Russia joining the movement will likely drive further adoption and growth. With the bank’s resources and experience in the financial sector, it has the potential to make a big impact in the DeFi space in Russia and beyond.
In conclusion, Sberbank’s DeFi platform, set to launch in May, is an exciting development for the decentralized finance space. With Sberbank’s size and resources, it has the potential to drive significant growth and adoption in the DeFi space in Russia. As the DeFi movement continues to gain momentum, it will be interesting to see how Sberbank’s platform will fit into the larger ecosystem and what impact it will have on the financial sector in Russia and beyond.