Russia's largest sanctioned bank is preparing to accept Tether's USDT as collateral for loans, despite its own central bank warning that foreign stablecoins carry a "high sanctions risk" because issuers can block or destroy the assets.
- Sber might expand its crypto-backed lending to include Bitcoin, Ethereum and USDT once Russia's new rules fully take effect and the Bank of Russia allows the assets into public circulation, Anatoly Popov, the bank's deputy chairman, told state news agency TASS on Friday.
"We plan to accept as collateral not only Bitcoin, but Ethereum and the Tether stablecoin, of course, after the central bank permits their public circulation," Popov said, according to a translation of his comments.
- Sber, Russia's largest lender and the country's dominant retail bank, has been under full blocking U.S. sanctions since 2022.
- Popov himself was also designated by the U.S. Treasury that year as a Sber executive.
Russia's central bank already flagged the problem
Just two months before Sber disclosed the USDT plan, the Bank of Russia published a consultation paper spelling out the sanctions risk attached to foreign-issued stablecoins.
- For cross-border use, the regulator said stablecoin issuers can generally seize tokens from lawful owners while citing unilateral restrictions, including without a court ruling.
- In a table summarizing the risks, it went further, labeling sanctions exposure a "high sanctions risk" and specifically listing the blocking or burning of assets by a foreign issuer.
Nor does Sber's announcement say how the USDT would ultimately be custodied or which wallets would hold it.
Still, the warning is particularly relevant to a sanctioned lender considering an asset whose issuer maintains centralized control over its tokens.
Tether's current terms define entities or blockchain addresses appearing on sanctions lists — including the U.S. Treasury's Specially Designated Nationals list — as sanctioned persons or addresses.
The company says it can "freeze any Tether Tokens held by you" when required by law or when it determines doing so is prudent, and its enforcement options can include blacklisting an address holding USDT.
- That doesn't mean Tether would necessarily freeze USDT used as collateral by Sber.
- The practical exposure would depend on how the product is structured, including who legally owns the collateral, who controls the wallets and what custody arrangement the bank ultimately uses.
The freeze risk isn't theoretical
Tether has previously frozen USDT connected to sanctioned Russian crypto infrastructure.
In March 2025, the company said it helped the U.S. Secret Service freeze $23 million in USDT linked to transactions involving Garantex, the Russian crypto exchange sanctioned by the U.S. Treasury.
Tether said at the time it had worked with law enforcement to block more than 2,000 wallets.
That episode helps explain the concern raised later by Russia's central bank. Unlike BTC or ETH, USDT has an issuer capable of preventing particular tokens or addresses from transacting.
Sber nevertheless has reason to explore the market. The bank has already experimented with crypto-backed lending, issuing a pilot loan in late 2025 to Russian crypto miner Intelion Data against crypto it had mined.
Earlier this year, Sber said demand from corporate clients was strong enough for it to develop the product further.
Popov told TASS that Sber had prepared for the new rules in advance and already had practical experience working with cryptocurrency. Once the legislation is fully in force, he said, the bank plans to adapt its existing products and broaden the range of assets it can accept.