Sberbank, Russia’s largest bank, is set to launch its decentralized finance (DeFi) system compatible with the Ethereum blockchain in May 2023. The platform is already in close beta testing and will open up for more trials by the beginning of March, according to the bank’s Product Director, Konstantin Klimenko. The news was disclosed by Klimenko during an Economic Congress session and reported by local media outlet Interfax on Friday. Sberbank had earlier teased the system back in November 2021, saying plans to integrate Ethereum with its own DeFi ecosystem were underway.
The Ethereum-based platform will launch for open testing in March ahead of the main launch in May. The system will begin facilitating commercial operations at the end of April, and MetaMask users will be able to connect to the DeFi platform. With over $29 billion in total value locked (TVL), Ethereum is the largest DeFi blockchain. MetaMask is a popular Ethereum wallet with over 10 million downloads on the Google Play Store.
Sberbank secured a crypto license from the Russian central bank in March 2022, giving the bank permission to issue and trade digital assets in line with financial regulations. In December 2021, the bank issued Russia’s first-ever exchange-traded fund (ETF) dubbed the Sberbank Blockchain Economy ETF. The product is tradable on the Russian stock exchange under the ticker SBBE.
The move by Sberbank to integrate with Ethereum is expected to boost the adoption of the blockchain, given that the bank boasts over 110 million customers as well as one million institutional clients. Origin Protocol co-founder Josh Fraser has previously touted Ethereum as the “base layer of innovation for the majority of DeFi”. Fraser opined that Ether (ETH) will also experience upward momentum as more protocols, businesses, and governments build decentralized tools on Ethereum and adopt the network.
Sberbank’s foray into DeFi is a significant development for the industry, given the bank’s size and influence in Russia. The bank has been actively exploring the crypto industry for a while now, and the launch of its DeFi system will be a major milestone. The platform will provide a range of decentralized financial services, including lending, borrowing, and trading. It will also enable users to earn interest on their crypto holdings and participate in governance.
The integration of Ethereum with Sberbank’s DeFi ecosystem is expected to create new opportunities for developers and entrepreneurs. The platform will offer a range of tools and services that will enable developers to build decentralized applications (dApps) on the blockchain. Entrepreneurs will be able to leverage the platform’s infrastructure to launch new DeFi projects and raise funds through token sales.
In conclusion, Sberbank’s move into DeFi is a significant development for the industry and is expected to boost the adoption of Ethereum. The platform will provide a range of decentralized financial services and create new opportunities for developers and entrepreneurs. With the launch of its DeFi system, Sberbank is set to become a major player in the crypto industry.