Banking spreads on cryptocurrency in Russia: why high fees are temporary and what competition will bring
The Russian market for bank cryptocurrency operations is just beginning to take shape, and the first steps of players will be accompanied by inflated spreads. However, as an analysis of market mechanisms shows, maintaining a margin of 5–7% or higher in the long term will not be possible — competition will inevitably adjust prices.
Why starting spreads will be high
At the initial stage, banks are forced to factor significant costs into the price of services: the cost of liquidity, compliance procedures, risk hedging, and the creation of new infrastructure. In certain products, the markup can reach several basis points, making them comparable to classic crypto exchanges, but with an adjustment for the regulated framework.
Nevertheless, I do not view spreads of 5–7% as a sustainable trend. As soon as several large banks and other regulated participants enter the market, margins will begin to shrink rapidly. The market, not the regulator, will determine the final price for the client.
The role of the Central Bank and market mechanisms
The Bank of Russia will most likely focus on access rules, the composition of participants, and infrastructure, but will not set specific buy or sell quotes. This means that markups may vary significantly across different banks — and that is normal for an emerging market.
Within each bank, the spread will depend on the number of active users, the volume of real client liquidity, and the cost of the bank's own liquidity that must be held on its balance sheet. Infrastructure and legal costs take a back seat — operational efficiency becomes the main factor.
Who will win the battle for the client
Success will favor those willing to invest in marketing and take risks to dominate the new economy. This applies not only to qualified investors but also to the mass user.
The more liquidity providers there are and the higher the competition among banks, the closer prices will be to market levels. This mechanism resembles the currency market rather than a product with an administratively set tariff. The mass client, by the way, is not yet ready to overpay simply for the word "bank" — the level of stress in retail has been too high since 2022. Users are open to many scenarios, but not to an unjustifiably expensive service.
The picture is completely different for affluent clients. Large capital continues to migrate between countries, and with an average transaction of 3–5 million rubles, a person is willing to pay for speed, transparency, and the absence of problems. The question of whom such a client will prefer — their own accountant or a Russian bank — seems rhetorical.
My conclusion: the market for bank crypto services in Russia will see rapid saturation, and high spreads are merely a temporary entry fee. Those who can offer a competitive price and quality service will win, not just those with the status of a regulated player. Clients, especially large ones, are already voting with their feet — and banks will have to take that into account.