Sberbank Set to Expand Bitcoin-Backed Loan Model: USDT Could Face Restrictions
Sberbank plans to add Ether and USDT to its Bitcoin-backed loan model following regulatory approvals.
Russia’s largest bank, Sberbank, is preparing to expand its product that allows businesses to obtain loans by using crypto assets as collateral. If the plan goes into effect, Ether and USDT could be added alongside Bitcoin. However, implementation will depend on the assets being publicly traded in Russia and the new regulatory framework taking effect.
Anatoly Popov, Deputy Chairman of the Board of Sberbank, told TASS that the plan will be implemented gradually after current products are adapted to Russia’s new crypto rules. The bank had previously tested its Bitcoin-backed loan model. In December, Bitcoin was held as collateral for a loan issued to the mining company Intelion Data. The loan amount was not disclosed.
Sberbank Will Not Limit Crypto Loans to Miners
In a statement made in February, the bank announced its intention to open the product not only to mining companies but also to other businesses holding crypto assets. This aims to create a new option for companies seeking financing without selling their digital assets.
The Central Bank of Russia included Bitcoin, Ether, and USDT in its draft list published in August. Market capitalization, daily trading volume, and at least a five-year price history on foreign platforms were considered in the selection of the assets. The new crypto law is expected to take effect on September 1. While the law allows transactions through licensed intermediaries, it continues to ban crypto payments within Russia.
Adding USDT as loan collateral carries a different risk compared to Bitcoin and Ether. Tether states that it can freeze USDT linked to sanctioned entities. In June, the Central Bank of Russia also warned that stablecoin issuers could restrict certain tokens without a court order. Therefore, the controllability of USDT collateral stands out as one of the key limitations of the product in Sberbank’s plan.