Sberbank, a Russian financial institution, launches Bitcoin-connected bond offerings
In a significant move, Russian financial institutions are venturing into the world of cryptocurrency, offering bitcoin-linked bonds. This development comes after the Russian Central Bank's announcement in March, which initiated a test phase for regulated trading in bitcoin and cryptocurrencies for selected participants.
T-Bank in Moscow has introduced a new investment product tied to the bitcoin price, following this announcement. Sberbank, one of Russia's largest financial institutions, has launched structured bonds whose yield depends on the bitcoin price development and the dollar-ruble exchange rate. These products are aimed at investors who are familiar with financial instruments and want to specifically bet on bitcoin and currency movements without direct investment in cryptocurrency.
The bitcoin bonds offered by Sberbank are currently available only in the over-the-counter market (OTC) but will be listed on the Moscow Exchange for more transparency, liquidity, and user-friendliness. Transactions must be in rubles and adhere to the Russian legal framework. Direct investment in bitcoin and other cryptocurrencies, as well as payouts in crypto-assets, are not permitted.
This move could be a first step for Russian financial institutions, given the sanctions due to the Ukraine war and exclusion from the SWIFT payment system. By offering these products, they are potentially familiarising themselves with an alternative financial system.
Last year, the Russian government legalized cryptocurrency mining and its use for international trade. Russia's Ministry of Finance and Central Bank are currently testing regulated bitcoin and cryptocurrency trading.
Stefan, a media scientist and sinologist working independently in the artistic-publishing field, has a particular interest in the social and ecological aspects of bitcoin and bitcoin mining, in addition to its monetary aspects. He points out that these instruments include financial derivatives, securities, and digital financial assets.
Some articles suggest that Russia is using bitcoin to potentially circumvent sanctions. However, the exact role of these bitcoin-linked bonds in bypassing sanctions remains unclear, as the specific Russian bank that announced the issuance of such bonds has not been explicitly named in the provided search results.
As Russia continues to explore the world of cryptocurrency, it will be interesting to see how these developments unfold and how they might impact the global financial landscape.
