Sovcombank launches lending for legal entities secured by bitcoin

Sovcombank is launching a lending program for companies secured by bitcoin, a source told Kommersant.

Loans will be available to legal entities operating in Russia for at least a year, provided they have confirmed ownership of cryptocurrency, submitted tax reports to the Federal Tax Service for the last year, and have no overdue taxes or loans.

The bank notes that the product may be in demand during a market downturn. Many holders prefer to wait for a more favorable moment to sell, and using bitcoin as collateral allows attracting funds for business development without forced selling at a loss.

The interest rate is set at the level of the key rate of the Central Bank plus 7 percentage points (currently around 23%).

In Russian law, cryptocurrency is not considered a means of payment, but is classified as "other property." This allows bitcoin to be used as collateral for loans.