Two of the Major Russian Banks Set to Test Crypto Products
There are divided views on Cryptocurrency investment. Some banks have advised their customers to not consider purchasing cryptos and have given cautionary guidelines regarding cryptocurrencies. Some banks have frozen their customer cards if any customer tries to purchase cryptocurrency on various exchanges.
Two of the largest banks in Russia have decided to start their trading solution for some of “the most reliable” cryptocurrencies. These banks intend to test various crypto products for their private clients.
Under the guidance of the Bank of Russia, Alfa Bank and Sberbank will offer the shares of their clients in a special fund. The mentioned fund will engage in trading the six most popular cryptocurrencies on major exchanges, which will also include Kraken and Bitstamp.
The products are being described by the banks as exchange algorithms which will operate on the basis of an investment portfolio comprising of the six most trusted cryptocurrencies. It includes Ethereum (ETH), Bitcoin (BTC), Litecoin (LTC) and Bitcoin Cash (BCH). The algorithms are self-adapting and will adapt according to the market situations.
The portfolio comprising of cryptocurrencies will be reviewed once in every quarter. The weighted values of cryptocurrencies on the portfolios will change according to the algorithm.
Alfa bank, headquartered in Moscow, is one of the largest private banks in Russia. It operates in 7 countries and offers financial services to 14.2 million retail clients and 3,60,000 corporate customers.
Sberbank, on the other hand, is a Russian Bank owned by the state and is a financial services provider. It is headquartered in Moscow. It operates in several Post-Soviet countries and European countries.
According to Anna Ivanchuk, The Deputy Head of Sberbank Private banking, “We want to offer our clients a completely transparent version of the entrance to digital assets that fully meet the regulatory requirements that will allow them to invest in an interesting product in Russia”.
Institutional investors are cautiously and gradually showing interest in the cryptocurrency market as an alternative means of investment.
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