Expobank Writes Russia’s First Crypto-Backed Loan
- The amount and terms of the loan are not disclosed to the public.
Russian commercial bank Expobank has issued the first crypto-backed loan in the country, taking Waves tokens as collateral.
Reported by local business media Kommersant today, the news was confirmed by Waves co-founder, Sasha Ivanov with a retweet.
The report detailed that the personal loan was issued to Mikhail Uspensky, an entrepreneur and a tax consultant. He bought the Waves tokens in 2018 and tried to stake them for recurring gains before approaching the bank to use them as loan collateral.
The collateralized tokens are currently being held by a third-party notary. Neither the bank nor Uspensky have disclosed the amount involved in the crypto-backed loan or the terms of the agreement.
Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term Cannot Be Used for Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term
Before issuing the loan, the bank had consulted with cryptocurrency experts and lawyers to ensure that Waves falls under the category of “other property” and is not a payment token.
Notably, the Russian government recently passed a law defining cryptocurrencies as property and banning their usage as a mode of payment. Already signed by Russian President Vladimir Putin, the new law will come into force from next January.
The bank’s legal department head Tanzila Yandieva also highlighted that this first crypto-backed loan will set a precedent in the Russian legal and banking community.
Though this type of loan with digital assets as collateral is first in Russia, the United States’ crypto-focused bank Silvergate is already offering such loans.
Expobank was previously owned by Barclays, but the UK banking giant sold it last year to local banker Igor Kim for an undisclosed sum as the bank failed to make a footprint in the market.
Russian commercial bank Expobank has issued the first crypto-backed loan in the country, taking Waves tokens as collateral.
Reported by local business media Kommersant today, the news was confirmed by Waves co-founder, Sasha Ivanov with a retweet.
The report detailed that the personal loan was issued to Mikhail Uspensky, an entrepreneur and a tax consultant. He bought the Waves tokens in 2018 and tried to stake them for recurring gains before approaching the bank to use them as loan collateral.
The collateralized tokens are currently being held by a third-party notary. Neither the bank nor Uspensky have disclosed the amount involved in the crypto-backed loan or the terms of the agreement.
Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term Cannot Be Used for Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term
Before issuing the loan, the bank had consulted with cryptocurrency experts and lawyers to ensure that Waves falls under the category of “other property” and is not a payment token.
Notably, the Russian government recently passed a law defining cryptocurrencies as property and banning their usage as a mode of payment. Already signed by Russian President Vladimir Putin, the new law will come into force from next January.
The bank’s legal department head Tanzila Yandieva also highlighted that this first crypto-backed loan will set a precedent in the Russian legal and banking community.
Though this type of loan with digital assets as collateral is first in Russia, the United States’ crypto-focused bank Silvergate is already offering such loans.
Expobank was previously owned by Barclays, but the UK banking giant sold it last year to local banker Igor Kim for an undisclosed sum as the bank failed to make a footprint in the market.