Cryptocurrency investment has been treated with caution by many banks around the globe. Some have even advise their customers not to buy them, with others freezing their customers cards whenever they attempt to purchase crypto on the numerous exchanges. However, two of the largest banks in Russia intend to test several crypto products for their private customers. These products include what the two banks – Sberbank and Alfa Bank – describe as exchange algorithms.
According to a report by the Kommersant Newspaper, the algorithms operate on the basis of an investment portfolio which comprises of the six most trusted cryptocurrencies in the market. The four cryptocurrencies named in the report include Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). The remaining 2 digital assets are yet to be confirmed by the two banks.
These algorithms will be self adapting and according to the market situations. The set of cryptocurrencies in the portfolio will be reviewed once every quarter and their weighted value on the portfolios changed according to the algorithm. The two banks will offer the products based on the existing regulatory platform of the Bank of Russia.
The Deputy Head of Sberbank Private Banking, Anna Ivanchuk was quoted as saying the following with respect to the new investment products:
We want to offer our clients a completely transparent version of the entrance to digital assets that fully meets the regulatory requirements that will allow them to invest in an interesting product in Russia.