Russia’s Largest Bank Debuts Bitcoin-Linked Bonds

Sberbank, Russia's largest bank, has rolled out a new investment product that ties returns to Bitcoin price as Russia warms up to crypto. The new structured bonds are available now to a limited group of qualified investors through the over-the-counter market, per a recent press release . Sberbank plans to offer these bonds on the Moscow Exchange soon, aiming to make them more transparent, easier to trade, and accessible to more investors. Details of the Bitcoin-Tied Structured Bonds Interestingly, these structured bonds present a unique two-way opportunity. Specifically, investors can benefit if Bitcoin's value in dollars rises and also if the U.S. dollar strengthens against the ruble.  In addition, investors don't need a crypto wallet or have to deal with unregulated foreign platforms. All transactions take place in rubles within Russia's legal and financial system. This presents exposure to crypto without stepping outside the country's regulatory framework. Notably, Russia's stance on crypto has continued to evolve in recent years. While cryptocurrencies like Bitcoin are still banned for everyday payments within the country, they are now legal for cross-border transactions . Meanwhile, the Central Bank of Russia announced a few days back that it now allows financial firms to offer crypto-focused investments to qualified investors. This opened the door for products like Sberbank's new bonds. Moreover, Sberbank confirmed that it is also preparing to launch Bitcoin futures through its investment platform, SberInvestments, on June 4. This move aligns with the Moscow Exchange's launch of crypto-based instruments.  Sberbank Dabbling into Crypto Amid a Global Trend Interestingly, this isn't Sberbank's first step into the scene. Since receiving a digital asset license from the Central Bank of Russia in 2022, the bank has issued and exchanged tokenized assets like gold and real estate.  It opened its digital asset platform to retail investors in 2023 and has handled billions of rubles in transactions. Sberbank also runs a blockchain network that works with Ethereum, aimed at supporting smart contracts and token creation. It began limited testing in 2022 and opened up public testing in early 2023. Globally, Sberbank's move mirrors a growing trend among top financial institutions. In the U.S., major banks like JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup are working on a joint stablecoin project designed to speed up cross-border payments.  HSBC introduced a crypto settlement product in Hong Kong, while BNY is investing heavily in blockchain for digital asset custody. Meanwhile, in March, BlackRock created a tokenized fund on Ethereum to expand investor access to blockchain-based assets, and it expanded to Solana shortly after.