Expobank is the first bank in Russia to issue a loan secured and backed by WAVES tokens as collateral.
Russia, the nation led by the current president Vladimir Putin, has been in a great debate regarding the adoption and use of the cryptocurrencies, On the one hand, the Russian Federation accepted Bitcoin as a digital asset suitable for investment and savings, so the cryptocurrency can be legally and freely used by Russian citizens as an asset for the safe haven of value. But on the other hand, the country approved a new bill which will come into force next year, and which will ban the use of Bitcoin and other cryptocurrencies as a means of exchanging value, preventing cryptocurrencies and digital assets from being used as a means of payment for the purchase of goods, products and services within Russian territory.
However, the rise and influence of cryptocurrencies and digital currencies today is leading different banking and financial entities to make immediate decisions in this regard. Thus, with the aim of becoming more attractive to new investors and borrowers, Expobank decided to venture into the world of crypto loans backed by digital assets. For this foray, the bank granted a loan to the renowned businessman Mikhail Uspensky, who owned Tokens WAVES since 2018, and which the bank accepted as a guarantee for the issuance of the loan.
Although the total amount of the loan granted is unknown to date, the CEO and founder of Waves, Alexander Ivanov, confirmed the news through his Twitter account.
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Loans secured by cryptocurrencies and digital assets
Expobank becomes the first bank in Russia to accept crypto assets as collateral for issuing loans in fiat money, but it is not the only entity to do so. In July alone, the American bank Silvergate Bank, issued more than $22 million in Bitcoin-backed loans, a move that allowed the bank to outpace the growth in its traditional financial loan book by more than 80% to date.
Despite being a relatively new sector that began to develop in 2018, the demand for this type of loans in banking entities that offer these products freely is growing as the volatility of crypto assets also increases, a practice that makes it quite risky.
In the case of Expobank, the acceptance of WAVES tokens will pave the way for the acceptance of more cryptocurrency-backed loans, as expressed by Tanzila Yandieva, head of the legal department at Expobank. Yandieva also assured that this initiative marks a precedent in the financial nature, both for the legal community and for the banking community of Russia, since in the nation, collateral deposits remain the safest way to ensure that the borrower fulfills his obligations, but the acceptance of digital assets as collateral is something completely new.
Meanwhile, the acceptance of WAVES tokens is completely legal within the Russian Federation. Yuri Borysov, a legal support lawyer for the banking lending area of Expobank, assured that there are no restrictions on the circulation or use of Waves in Russia.
The growing adoption and investment in cryptocurrencies
Several experts agree that, globally, the adoption of cryptocurrencies and digital assets has increased considerably. Michael Roos-Johnson, director of the blockchain platform Chatex, acknowledges that there is currently a great influence of cryptocurrencies and digital assets within traditional financial systems, although at the same time it is still too early to ensure that they are completely reliable assets.
What is certain is that the new digital era is forcing banking and financial institutions to delve into the current technological transformation, to develop financial products and instruments that compete with the innovations offered by other entities every day. We are in a constantly changing world where we must adapt as technology continues to evolve.
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