Russia's largest bank, Sberbank, expects trading volumes under its new crypto rollout to reach 4 trillion rubles ($46.43 billion) in the first year, according to reports.

Volumes are projected to grow to 7.5 trillion rubles ($87.06 billion) by 2029, Sberbank Deputy Chairman of the Executive Board Anatoly Popov was quoted as saying by Tass on Saturday. The news report described the forecast as "conservative." Sberbank is majority-owned by the Russian state, meaning the forecast effectively signals institutional endorsement of crypto trading from within the country's state banking apparatus, a notable shift for a sector that Russian regulators long treated with suspicion.

In July, Sberbank revealed plans to launch a Bitcoin and cryptocurrency wallet along with digital asset custody services by December, as previously reported. The Bank of Russia published draft regulations for crypto trading in July, and the State Duma is preparing comprehensive digital asset legislation. How closely the final Duma legislation matches the central bank's draft rules, and whether Sberbank meets its December launch target, will shape how quickly these volume forecasts can materialize.

In a Friday report, Tass quoted Popov saying the bank also plans to accept Bitcoin and other cryptocurrencies as collateral for loans.

Russia is moving quickly to regulate digital assets. President Vladimir Putin this month signed a law enshrining the regulation of digital currencies and digital rights in the country. The new law reportedly allows only registered entities to operate as exchanges and places limits on the amount of crypto retail investors can use. That licensing-plus-caps approach mirrors the framework other jurisdictions, such as the EU with its Markets in Crypto-Assets regulation, have adopted as governments weigh investor protection against capital flight risks.

Despite the rollout, using digital assets as a means of payment or legal tender within Russia remains banned. Crypto payments have been prohibited in Russia since 2022.

Putin has appeared to praise Bitcoin in the past, once saying that the leading cryptocurrency cannot be stopped.

After the U.S. and European governments cut Russia off from the SWIFT payments system following its invasion of Ukraine in 2022, Russian companies have used Bitcoin to circumvent the sanctions.

Meanwhile, the Russian state maintains a tight grip on what its citizens can do with crypto. Authorities have been cracking down on and arresting people operating unregistered crypto exchanges, and even small amounts can draw severe consequences: a nuclear engineer in Sarov was sentenced to 18 years for sending about $13 from his crypto wallet to groups the state designates as terrorist organizations.

This article first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.