Russia’s second-largest financial institution, VTB Bank, is poised to enter the cryptocurrency market with a significant move. As one of the world’s largest banking entities, boasting assets exceeding $35 trillion and a customer base approaching 25 million, VTB aims to integrate digital currencies into its offerings by next year. This strategic expansion targets high-net-worth individuals with sizable portfolios ($1.3 million or annual earnings above $649,000) seeking access to crypto services.
VTB’s new initiative will allow clients to purchase cryptocurrencies directly through brokerage accounts. The bank also highlights a strong interest from clients in digital assets, and the upcoming service launch is driven by this growing demand and the global trend towards digital currencies. This move reflects the evolving regulatory landscape in Russia, where cryptocurrency transactions are overseen with strict guidelines. 2022 witnessed many Russian oligarchs moving assets to Dubai during conflict-related asset freezes, prompting President Putin’s interest in cryptocurrencies as a stable alternative amidst currency volatility.
VTB’s plan is also bolstered by recent potential easing of crypto restrictions and its commitment to digital finance, following the lead of other major banks such as Sberbank. The bank’s decision to develop crypto services aligns with President Putin’s view on cryptocurrency and reflects a shift toward more secure asset management in response to geopolitical uncertainties.
VTB’s move is significant as it marks the entry of a major financial institution into the burgeoning crypto market.