Digital financial assets (DFAs) for a total exceeding $26 million have been issued in Russia in the past year. This new market has been developing since it was regulated in 2021 and the country’s monetary authority started licensing issuers in the following year.
Volume of Digital Assets Increases in Russia as Investors Seek Alternatives to Traditional Instruments
Less than a year since Central Bank of Russia (CBR)-approved entities began issuing digital financial assets, these have issued DFAs for 2 billion rubles (over $26 million). The data was announced by Ekaterina Frolovicheva, general director of the tokenization service Atomyze.
Speaking at a round table in the ‘Digital Financial Assets – New Tool for Attracting Liquidity’ Public Chamber, Frolovicheva explained that the first DFA issuer was added to Bank of Russia’s register on Feb. 3, 2022, but the issue of DFAs started several months later.
Quoted by the Tass news agency, she also noted that the unique features of DFAs make them extremely attractive and that demand is on the rise. For example, hybrid digital rights combine the properties of digital financial assets and utilitarian digital rights, simultaneously certifying a monetary claim and a right to demand the transfer of an asset.
Stablecoins, when not intended for settlements, as well as non-fungible tokens (NFTs) can be issued as hybrid digital rights in the Russian Federation. That’s possible under the law “On Digital Financial Assets” which went into force in January 2021. However, the country has yet to regulate operations with decentralized cryptocurrencies like bitcoin.
Atomyze is one of the platforms authorized by the CBR to issue DFAs, alongside the fintech company light houseas well as Sberbank and Alfa Bank, Russia’s largest state-owned and private bank, respectively. Another entity was recently licensed — Distributed Registry Systems, which operates the ‘Masterchain’ blockchain platform.
Russians will soon be able to invest in DFAs along with other instruments, such as stocks and bonds, while avoiding the risks associated with traditional instruments and bypassing financial market intermediaries, commented by Maxim Trofimov, CEO of a company called Digital Assets.
Do you expect the digital assets market to continue to expand in Russia? Share your thoughts on the subject in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.