Russia’s Largest Bank in its First Official ICO

Russia’s Largest Bank in its First Official ICO

The state-owned Russian bank Sberbank CIB, in conjunction with the National Settlement Depository (NSD), will run the country’s first official ICO once they receive final approval from the Central Bank, which is expected this summer.

Sberbank CIB is the investment banking division of the parent company Sberbank which is the largest bank in Russia and in wider Eastern Europe with around 86.5 million active retail clients.

The NSD is a member of the Moscow Exchange Group and provides depository, settlement and related services to the financial markets. It is the largest securities depository in Russia by market value of equity and debt securities held in custody.

Test for Bank of Russia’s New Regulatory Platform

The upcoming launch will provide a test run for the Bank of Russia’s regulatory platform which was founded last month and is to act as a sandbox for blockchain-based companies.

The ICO itself is on behalf of Level One, a company which runs Moscow’s biggest commercial lecture hall, and although exact details are still to be released they are expected to be in the process of tokenising their online services.

The three key players will co-ordinate on the project with Sberbank CIB being the issuance leader and NSD the custodian of the transactions while the Bank of Russia will be evaluating the overall mechanisms involved to provide feedback for future ICOs.

Igor Bulantsev, Senior Vice President of Sberbank and Head of Sberbank CIB, stated that “Sberbank CIB considers the Russian ICO market to be very promising… we plan to promote this service proactively once the appropriate legislative framework comes into effect.”

Eddie Astanin, Chairman of the Executive Board, NSD, said “Our end goal is to create the fundamental basis for the development of the digital economy in our country, for the emergence of a new type of asset for investors, for ICO ecosystems, and for the circulation of digital assets on the secondary market.”