Russia’s largest bank, Sberbank, has taken a new step into the crypto space by issuing the country’s first loan secured by cryptocurrency. The pilot loan was given to Intelion Data, one of Russia’s biggest Bitcoin mining companies.
Sberbank confirmed that the loan was backed by digital currency mined by Intelion Data. However, the bank did not reveal how large the loan was, how long it will last, or how much crypto was used as collateral.
Crypto Held Safely Until Loan Is Repaid
To manage the risk, Sberbank stored the crypto collateral using its own custody system called Rutoken. This system keeps the digital assets locked and protected until the borrower fully repays the loan.
According to the bank, using an in-house storage solution…
