Russia’s central bank has taken a significant step by allowing banks to offer cryptocurrency-based financial instruments to accredited investors, a move that could reshape the landscape of digital finance in the country. Announced on May 28, this decision permits Russian financial institutions to provide a range of crypto products, including derivatives, securities, and other digital financial assets linked to crypto prices. Crucially, these offerings must not involve the actual delivery of cryptocurrencies.
Russian Banks Embrace Crypto Products
The decision comes at a time when Russian residents have significantly increased their crypto asset inflows, with a reported 51% rise in the first quarter of 2025, accumulating to a staggering 7.3 trillion rubles ($81.5 billion). In the wake of this announcement, major banks wasted no time in launching new cryptocurrency investment products. T-Bank, previously known as Tinkoff Bank, stands at the forefront, having announced on May 29 that it will offer digital financial assets tied to Bitcoin. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
T-Bank’s novel “smart asset” product, issued through the state-backed tokenization platform Atomyze, will only be available to accredited investors. As described by T-Bank, the tool allows investment in cryptocurrency through rubles using a familiar application, all within the legal framework of the Russian Federation, and crucially, without the need for opening a crypto exchange account or dealing with wallet protection hassles.
Direct Crypto Investments: Still a No-Go
Despite this green light for local lenders to delve into crypto products, the Bank of Russia remains cautious about direct cryptocurrency investments. The central bank’s statement emphatically advises financial institutions and their clients against direct investments in cryptocurrencies. This stance aligns with ongoing government discussions about launching an experimental regime that might allow specific investors to trade crypto assets such as Bitcoin directly. This cautious approach is echoed in the global financial landscape, as highlighted in our recent coverage of Eric Trump’s warning to banks about the necessity of adopting crypto to avoid obsolescence.
The latest financial stability review by the Bank of Russia estimates that Russians hold approximately 827 billion rubles ($9.2 billion) in cryptocurrencies on centralized exchanges, with Bitcoin leading the pack at a 62% share. Ether follows with a 22% share, while stablecoins like Tether USDt and Circle’s USDC account for 15.9%. However, local crypto enthusiasts argue that these figures might not capture the full extent of cryptocurrency holdings by Russians.
Sergey Mendeleev, founder of the digital settlement exchange Exved, suggests that prominent figures like Pavel Durov and Alexey Bilyuchenko possess more crypto in their wallets than these estimates suggest. Mendeleev hints at substantial holdings in wallets and decentralized exchanges, indicating a much larger footprint of crypto ownership than officially reported.
Looking Ahead: Uncertainties and Opportunities
The Bank of Russia’s cautious yet forward-looking move underscores a complex balancing act. On one hand, there’s an acknowledgment of the burgeoning interest in digital assets among Russian investors; on the other hand, there’s a steadfast commitment to maintaining control and oversight, especially regarding direct crypto investments.
This development raises intriguing questions about the future of cryptocurrency in Russia. Will the central bank’s cautious approach stifle innovation, or will it create a more secure and structured environment for crypto investments? And as banks like T-Bank begin to navigate this new frontier, the potential for growth—and the accompanying challenges—seems immense.
As the world watches Russia’s crypto journey unfold, one thing is clear: the intersection of traditional finance and digital currencies is becoming increasingly blurred. The next steps Russia takes could have ripples far beyond its borders, influencing global perceptions and strategies around cryptocurrency investments.
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
