Russian Banking Giant Sberbank To Create A DeFi Platform On Ethereum
Sberbank, the preeminent bank of Russia, is planning to launch an Ethereum-based platform featuring decentralized finance (DeFi). This staging period will begin in March and should be available for public use by May. As part of the platform’s open testing phase, individuals are invited to experience firsthand how Sberbank’s DeFi solution can revolutionize financial services.
Sberbank ‘s DeFi Platform To Be Opened Will Be MetaMask Compatible
Konstantin Klimenko, the Product Manager of Sberbank‘s Blockchain Lab, asserted that the blockchain system would be compatible with Ethereum and administered by ConsenSys, allowing customers who use MetaMask-compatible cryptocurrency wallets to easily access it. This platform allows users to seamlessly transfer their cryptocurrencies from old platforms onto new ones! Klimenko further claimed that DeFi systems could possibly supplant traditional banking systems in due course.
Last month, Sberbank announced its ambitious plan to interconnect its blockchain platform and the Ethereum-based decentralized financial ecosystem. Despite this progress, both the Russian Central Bank and the Ministry of Finance are fully aware of the potential risks that come with DeFi – a form of borrowing and payment processing that utilizes smart contracts instead of third-party intermediaries.
This Is Not The First Entry Into The DeFi World
Recently, traditional financial institutions have been keen to explore the world of DeFi and blockchain technology by integrating it into their existing regulated operations. As such, Sberbank – one of Russia’s largest banks having over 110 million customers and 1 million corporate clients – has taken a special interest in this space. Their involvement with cryptocurrency is undeniably significant and noteworthy.
Undeniably, Sberbank‘s experience with cryptocurrency is far from novel. Back in March 2022, it was granted a permit by the Central Bank of the Russian Federation to both issue and trade digital assets. As well as this, only several months ago, it initiated Russia’s initial blockchain-based exchange-traded fund (ETF). This approval arrived soon after the proclamation of an absolute ban on all cryptocurrency trading and mining activities from The Kremlin. Through these actions, Sberbank wishes to make its trustable digital asset available to companies across the nation.