Banking spreads on cryptocurrency in Russia: why high fees won't last long
The Russian banking sector is preparing to launch cryptocurrency operations, but the first steps will be accompanied by inflated spreads. Contrary to client expectations, initial markups will be higher than on classic crypto exchanges, but maintaining them at 5–7% or more in a competitive environment will not be possible. This is not a matter of financial institutions' greed, but an objective reality of forming a new market niche.
Why spreads will be high at first
The key factor determining the price for the client is not the bank's desire to profit, but the cost of liquidity. At the initial stage, banks will have to factor into quotes the costs of hedging, compliance, and building new infrastructure. In certain products, the markup could reach several basis points, which will inevitably affect the final price for the user.
However, such levels are not viable in the long term. As soon as several banks and other regulated players enter the market, margins will begin to compress. The market, not the regulator, will dictate the terms: the final spread will be composed of the global price of the crypto asset, the cost of liquidity, and the infrastructure costs of a specific bank. The regulator, in turn, will focus on access rules and the composition of participants, rather than setting fixed quotes.
Who will win the fight for the client
In this race, victory will go to those willing to invest significant budgets in marketing and take risks to dominate the new economy. This applies not only to qualified investors but also to the mass consumer. Notably, the retail client today is not ready to overpay simply for the word "bank" — the stress level after 2022 has made them sensitive to unjustified markups.
The situation is different for wealthy clients. Large capital continues to migrate between jurisdictions, and with an average transaction of 3–5 million rubles, a person is willing to pay for speed, transparency, and the absence of problems. For such a client, the choice between their own accountant and a Russian bank is obvious — it is a rhetorical question.
My analysis: The market for banking crypto services in Russia will develop according to the scenario of the currency market, not an administratively regulated tariff. Banks that are the first to build reliable liquidity and offer competitive terms will gain a structural advantage. However, the mass client will still remain conservative: until spreads approach exchange levels, a significant portion of users will prefer familiar channels, despite regulatory risks.