Sberbank, Russia’s largest bank, plans to create cryptocurrency trading infrastructure, including a digital depository, no later than Dec. 1 as Russia moves to bring crypto trading, custody and settlement into its regulated financial system.

The digital depository will record ownership of cryptocurrency and process most transactions outside the main blockchain, Interfax reported. Sberbank will also operate active wallets for client-initiated deposits, withdrawals and transfers. The planned setup points to a regulated-market model in which licensed financial institutions handle records, custody functions and client transfer orders rather than leaving all activity to direct on-chain transactions.

“One of the key elements of the new infrastructure will be a digital depository, which will maintain records of clients’ cryptocurrency rights and account for transactions outside the main blockchain,” said Alexander Vedyakhin, first deputy chairman of Sberbank’s management board, according to the state-affiliated press service. “It will also facilitate transactions on active wallets to fulfill clients’ currency transfer orders.”

Russian lawmakers earlier this month moved the country closer to its first comprehensive crypto market framework after completing final readings on a bill to regulate digital asset activity.

The bill would give the Bank of Russia broad authority over the regulated market, including the power to decide which crypto assets may be offered through licensed intermediaries and to issue implementing regulations. The central bank has set liquidity requirements, including an average market capitalization of more than 5 trillion rubles, or about $64 billion, and average daily trading volume of more than 1 trillion rubles, or about $12.8 billion, over two years.

Once in force, the framework will establish five categories of regulated market participants: crypto exchanges, brokers, asset managers, custodians and exchange service providers. It will define who can buy, sell, hold and exchange crypto assets from the framework’s effective date of Sept. 1, 2026. Sberbank’s Dec. 1 infrastructure target comes well before that effective date, making the central bank’s implementing rules and licensing decisions key next steps for how the planned system would operate under the final regime.

Moscow advances crypto framework as EU expands sanctions

Russia is moving to establish working crypto infrastructure as the European Union increases sanctions pressure on the country over its war in Ukraine. Last week, the bloc added cryptocurrency exchange HTX, formerly Huobi Global, to its sanctions list.

In a Thursday decision, the European Council amended previous measures “in view of Russia’s actions destabilizing the situation in Ukraine” and included HTX among 18 entities “providing crypto-assets services or payment services established outside of the Union that are significantly frustrating the purpose of the prohibitions” against Russia. Russia continues to face sanctions globally over its war in Ukraine following its military invasion in 2022.

The sanctions against HTX came on the same day EU officials announced that Belarusian nationals and residents would be prohibited from owning, controlling or managing crypto exchanges and digital asset service providers under the region’s Markets in Crypto Assets framework, known as MiCA.

The UK government imposed similar sanctions on HTX in May, saying there were “reasonable grounds to suspect” that the exchange supported Russia’s government through financial services and funds facilitated by sanctioned entities.