Russia’s Moscow Stock Exchange plans to start issuing and trading digital financial assets by the end of the year.
If successful, the Moscow Stock Exchange will be only the ninth company to receive such a license.
Russian companies are turning to digital financial assets
Faced with difficulties in accessing foreign financing in the current geopolitical climate, Russian companies are increasingly turning to digital assets as a means of raising money.
And since 2021, Russian regulation provides such an opportunity to shake up financial markets. Under the 2021 law, digital financial assets (DFAs) are an asset category that sits somewhere between crypto and traditional securities.
Essentially, DFAs are tokenized shares in a company or other corporate entity. In recent years, various companies have used them to raise capital. And their popularity is growing.
For example, last month the State Railways of Russia conducted its largest ever issue of financial instruments. The state railway operator raised 15 billion rubles from its DFA sale.
But so far, the country’s largest exchange has yet to fully embrace the technology.
Last month, the St. Petersburg Stock Exchange became the first exchange operator to register with the Bank of Russia as a DFA exchange.
Including the St. Petersburg Stock Exchange, eight companies are registered to issue and list DFAs. These include Sberbank, Alfa-Bank and digital asset platform Atomize.
Moscow Stock Exchange aims for late 2023 for DFA listings
In comments from BeInCrypto, Sergey Demidov, Director of Information Security at Moscow Exchange Group, said the company plans to roll out DFAs by the end of the year.
He added that the company is working with the National Bank of Russia to obtain the necessary permits.
Russia aims to further rationalize the DFA market
As the Russian DFA market evolves, the country’s policymakers are trying to further encourage the adoption of the new financial instrument.
A law before the State Duma could streamline the process by allowing companies like the Moscow Stock Exchange to issue and list DFAs on the same platform they use to trade traditional securities.
However, the Treasury has raised concerns about plans to further integrate the DFA market into traditional financial infrastructures. In April, an official said the ministry supports the technology in principle.
However, he warned that allowing DFAs on exchanges risks blurring the line between digital assets and securities.
Disclaimer
In accordance with Trust Project policies, BeInCrypto is committed to unbiased and transparent reporting. The goal of this news article is to provide accurate and timely information. However, readers are encouraged to independently verify the facts and consult a professional before making any decisions based on this content.
Comments are closed.