Sberbank Will Permit Users To Issue NFTs On Its Blockchain Platform

Sberbank Will Permit Users To Issue NFTs On Its Blockchain Platform

One of the largest banks in Russia, Sberbank, has decided to permit users to issue non-fungible tokens or NFTs on its blockchain platform. The financial institution also plans to work with art sites and galleries across the country.

Bank Will Provide Opportunity to Mint NFTs

Deputy Chairman of Sberbank, Anatoly Popov, revealed during the Eastern Economic Forum in Vladivostok that he hopes to provide users with the opportunity to issue non-fungible tokens or NFTs on the bank’s blockchain platform in the fourth quarter of the year.

The top executive also added that the Russian banking giant plans to start working on projects with art sites, galleries, and potentially sports organizations for releasing NFTs related to games and tournaments.

The leading Russian business news portal RBC's crypto page reported on Popov, indicating that the bank will begin testing minting NFTs before offering them to customers. At the initial stage, the service will be limited due to content moderation needs, he added.

Sberbank, the biggest Russian bank by asset valuation, established its blockchain platform after the Central Bank of Russia granted permission to issue digital financial assets in March this year. The platform is currently open to legal entities only, but the bank is hopeful that in the last quarter of 2022, private individuals will also be granted access to issue, buy, and sell digital financial assets (DFAs).

The law "On Digital Financial Assets" went into force in January 2021. Moscow Exchange is preparing to list DFAs by the end of this year. Popov acknowledged that there is demand for NFTs while noting that Russians have been successfully placing digital assets on foreign platforms. He also pointed out that the launch of the NFTs raises many questions that need answers, including the content represented by the tokens.

Russia is yet to comprehensively regulate cryptocurrencies as the current law only applies to coins that have an issuer. A new law "On Digital Currency" will be reviewed in the State Duma, the Lower House of the Parliament. While most government institutions agree that the Russian ruble should be the only legal tender in the country, calls have been mounting to legalize the use of decentralized digital currencies in foreign trade.