Sberbank of Russia intends to create a DeFi platform using Ethereum

DeFi systems are able to disrupt the existing market for financial services, according to Konstantin Klimenko, product director of Sber’s Blockchain Lab.

Sberbank, the biggest bank in Russia, is pushing ahead with the introduction of its decentralised financing (DeFi) platform and is planning to test the product in a few months.

Sberbank anticipates launching open trials of its DeFi platform by May 2023, according to Sber’s Blockchain Lab product director Konstantin Klimenko, as reported by Interfax on February 3.

Klimenko said that Sberbank’s planned DeFi platform, which is now being evaluated in private beta, would be fully operational by the end of April, allowing customers to execute the first commercial transactions.

The CEO said that the blockchain platform would be interoperable with the Ethereum blockchain, enabling clients to utilize popular wallets, such as MetaMask, to transfer their assets. Additionally, Klimenko said that users would be able to transfer their assets from other platforms.

The blockchain executive indicated that Sberbank’s DeFi platform intends to become Russia’s leading DeFi ecosystem. He also expressed optimism that DeFi systems may displace the conventional financial services sector.

This statement is consistent with Sberbank’s previously revealed intentions to permit DeFi apps on the bank’s infrastructure. In November 2022, Sberbank unveiled a series of new capabilities for its proprietary blockchain technology, including as interoperability with smart contracts and Ethereum network apps.

It is unknown how the forthcoming platform will be controlled since Russia has not yet enacted digital currency laws. According to Anatoly Aksakov, chairman of the Duma’s Committee on Financial Market, Russia would “certainly” implement cryptocurrency laws in 2023.

As previously reported, Sberbank struggled to implement various blockchain-based solutions during the last few years owing to the Russian central bank’s frequent registration delays. Sberbank had planned to begin its digital asset issuance platform in 2021 but gained clearance from the Bank of Russia in the spring of 2022. Sberbank’s primary stakeholder is the Russian government, which owns 50% + 1 share.

Alfa Bank, one of the biggest private banks in Russia, was granted permission to issue digital assets on February 2, joining Sberbank, the government-backed tokenization platform Atomyze, and the fintech business Lighthouse.

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