Financial Institutions in Russia to Test Central Bank's ICO Platform

Financial Institutions in Russia to Test Central Bank’s ICO Platform

Major financial institutions in Russia are all set to trial a new regulatory platform developed by the central bank of Russia, aimed at making domestic ICOs (initial coin offerings) more secure and transparent for Russian investors.

Russia’s NSD (National Settlement Depository) is currently working with Sberbank CIB, the bank’s multinational investment banking and asset management arm, to trial the ICO issuance platform launched in April by Russia’s central bank – the Bank of Russia, it announced on Thursday.

According to an announcement, LevelOne, a software company will launch a token sale, in the testing process, and Sberbank CIB will be the ‘issuance coordinator and anchor investor’ of the sale. Meanwhile, Russian NSD will act as the ‘custodian’ whose job would be to record and settle transactions, all while safeguarding the assets.

The financial institutions say the ICO platform will essentially bring more transparency to the token issuance process, reducing risks for traditional investors in the country. This trial before the launch, along with feedback from the Bank of Russia, is hoped to improve the platform before it can be finally used in the real world.

Head of Sberbank CIB and Senior Vice President of Sberbank, Igor Bulantsev, explained:

“Sberbank CIB considers the Russian ICO market to be very promising. Many Sberbank clients are interested in this type of investment, and we plan to promote this service proactively once the appropriate legislative framework comes into effect; we will be one of the drivers to institutionalize and popularize this type of transaction.”

Earlier this year, the Bank of Russia and the Russian Finance Ministry made a statement that they have already resolved the disagreement over a draft bill covering cryptocurrency related activities. The country now eyes the summer deadline to roll out new laws.

Chairman of NSD’s executive board, Eddie Astanin, said the main objective of this project is to give investors access to a new type of asset and allow the movement of digital assets in the market.

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