The Russian Bank Sberbank plans to launch a new decentralised finance (DeFi) platform on top of Ethereum (ETH). Decentralised Finance became very popular back in 2021 and expanded to multiple platforms and ecosystems. Ethereum (ETH) was one of the most popular platforms to run and create DeFi solutions. Now, Russia’s Sberbank is planning to launch a new decentralised platform on top of Ethereum (ETH).
Russia’s Sberbank Works to Launch New DeFi Platform
The largest bank in Russia, Sberbank, is working in order to launch a new decentralized finance platform. The goal would be to create a trial product in just a few months and then launch a final version. The information was released by the local news agency Interfax a few hours ago.
At the moment, there is a private beta that is being tested and that will allow the company to find bugs and solve potential issues. Moreover, the new platform will be running on top of Ethereum, the largest blockchain network for applications and DeFi solutions in the world.
Due to the current situation in Ukraine and the ongoing war, decentralized solutions that are not linked to traditional financial systems and legacy infrastructure, there is a possibility for the growth of decentralized projects. However, it might take longer for these DeFi solutions to create and generate a strong impact on the financial markets.
However, this is not the first time that Sberbank announces that they are working with blockchain technology or with the digital currency market. In the past, they have also announced that they were developing a unique smart contracts platform running on the Ethereum platform.
What is Decentralized Finance?
Decentralized Finance is one of the trends in the cryptocurrency market that expanded in 2020 and 2021 with the goal of offering new solutions to crypto users and people around the world. The goal is to create a new ecosystem that would rely more on decentralized solutions than on the current financial system.
DeFi platforms are created using blockchain technology and many different networks. How does that work? It works depending on the type of service offered by the project and by using smart contracts. These smart contracts facilitate the execution of simple and more complex tasks eliminating the need to rely on centralized financial institutions.
Therefore, people and investors can rely on these smart contracts to process payments, invest in different assets, send and receive money, and sign legal contracts, among other things. Smart contracts have also evolved in many other industries, including the entertainment one, especially for non-fungible tokens (NFTs) and more.
Sberbank is showing more interest in decentralized finance solutions as Russian companies and banks are being cut from the whole financial system. This is creating multiple problems for companies that have a business in Russia.
Therefore, there is a clear interest from Russia and other countries to start using DeFi solutions to go around traditional financial institutions. This experience with Sberbank is just one of the many projects that are currently being considered by Russian companies.
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