Expobank issues the first crypto-secured loan in Russia

CEX.IO company blog | For the first time, a loan secured by cryptocurrency was issued in Russia

Expobank issues the first crypto-secured loan in Russia

This week Expobank for the first time issued a loan through the conclusion of an individual bank loan agreement secured by Waves tokens.

According to the press release, during the transaction, an escrow mechanism was used, which is currently the best option for fulfilling obligations through the transfer of deposited digital assets.

According to the borrower Mikhail Uspensky, he does not plan to sell his tokens, but believes that the cryptocurrency should not lie dead, but work. Although there are already DeFi projects on the market that allow pledging digital assets for fiat, it is difficult to organize such a deal with Waves..

Expobank issues the first crypto-secured loan in Russia

Loan amount was not disclosed.

As Alexander Zhuravlev, managing partner of the law firm, explains «EBR», participating in the support of the transaction from the client’s side, the tokens at least fall under the definition «other property». but since they are non-payment, their circulation in Russia is not limited. At the same time, lawyers celebrate, that although such transactions in the country can be carried out quite legally, there is still legal uncertainty in this area.

In 2020, many banks around the world began to work with cryptocurrency, and in July, the Office of the Comptroller of the Currency of the United States officially authorized to provide all national banks with digital asset custody services.

text: Ivan Malichenko, photo: myseldon