The Lede
Russia’s ninth-largest lender, Sovcombank, has officially opened its loan books to Bitcoin collateral, becoming the first financial institution in the country to offer the product to a wide public audience. According to reports from the business daily Vedomosti, the sanctions-hit bank is now underwriting loans for both individuals and corporations secured by digital assets, a move that significantly escalates the integration of crypto into Russia’s isolationist economy.
The Terms: 23% APR
The liquidity comes at a steep premium. Sovcombank’s product carries an interest rate floating at the Central Bank of Russia’s key rate plus seven percentage points. With the current key rate estimated at 16%, borrowers face an annualized cost of roughly 23%.
Specifics of the offering include:
- Collateral Factor (LTV): 50% (borrowers receive half the market value of pledged BTC).
- Tenure: Up to two years.
- Eligibility: Borrowers must prove legal ownership of the assets and, for corporates, demonstrate tax compliance.
Market Context: Hodling Through the Drawdown
The timing is precise. With Bitcoin trading near $71,000, down roughly 40% from its October 2025 peak of $125,000, Russian holders are incentivized to borrow rather than sell at a local bottom. The high interest rate suggests the target demographic is not the casual trader, but distressed entities needing ruble liquidity without triggering taxable events or realizing losses on their crypto positions.
We offer bitcoin-secured lending, allowing our clients to raise financing for business development without having to sell their assets.
The Institutional Trend
This rollout follows a restricted pilot by state-owned giant Sberbank in late 2025, which issued a crypto-backed loan to mining firm Intelion Data. Sovcombank’s decision to broaden access signals that Russian banks are moving ahead of final regulatory clarity, likely leveraging the “Experimental Legal Regime” frameworks being tested to bypass Western financial exclusions.
