Russia’s Leading Private Bank Introduces Digital Asset Platform

• Alfa bank has over 22 million active users globally. 
• Alfa bank operates its business in over seven other countries.   

Alfa-Bank is the second largest bank to receive approval to mint digital coins. Sberbank, a state-owned bank, is the largest bank in Russia as of now. 

The newly launched platform of Alfa Bank is coined as ‘A-Token’ to issue digital financial assets. This puts them at par with other banks/financial institutions in the country that are officially allowed to issue digital assets.

Alfa Bank is the largest in Russia in terms of total assets, total equity, customer accounts and loan portfolio. The bank has received a green signal from financial authorities to launch its digital assets platform. 

Alfa bank was established in 1990 by Mikhail Fridman and is headquartered in Moscow, Russia. The bank has 22 million active corporate customers.    

After the Russia and Ukraine war impacts, the demand for cryptocurrencies has rapidly increased compared to earlier demands, leading to the development of several crypto products worldwide.  

The increasing demand for crypto is opening several paths for financial institutions and regulators to enter the crypto sector. The giant financial companies of the nation are not leaving any opportunities to take advantage of the growing demand for crypto. 

Decentralized finance platforms became famous after the introduction of blockchain technology, which has benefits like faster transaction speed, Interoperability and no third-party involvement. 

Bitcoin was the first cryptocurrency that came into existence and is the leader of the crypto market and was developed by pseudonymous computer developer Satoshi Nakamoto.

Alfa Bank acquired a local fintech company Netmonet on March 9, 2021, enabling cashless restaurant tip payments. The bank also acquired Pay-Me, a company that provides mobile point-of-sale(mPOS) services for small and medium merchants. 

Alfa Bank has invested in five companies and is a lead investor in three. Veon is an international communication and technology company that Alfa Bank majorly funds. 

ivi, a video-on-demand platform and cardsmobile, is a mobile wallet developer which is among the major investments of Alfa bank. Alfa bank is a follower investor of Net Element and another similar company.    

Lighthouses and Atomzye are some others who received regulatory approval to launch their digital assets. Both collaborate with VTB Bank and Rosebank to launch their digital assets.

Sberbank has also received regulatory approval to launch its DeFi platform. The bank is working hard and preparing a roadmap to launch its decentralized finance, expected by the end of Q1 2023.    

Evangelist states that DeFi will lower the banking cost and ultimately replace the traditional financing banking system. At the same time, antagonists believe that the system has fewer real-world benefits and the same disadvantages as the crypto sectors.

Since the last few years, the crypto market has suffered severe volatility, and the prices of most cryptocurrencies have descended by more than 50%. However, the beginning of 2023 has reflected many positive movements in the market, with the leader coins, like Bitcoin, recently trading near $24K.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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