Russia seeks to tokenize goods and property to boost investment

Financial authorities in Russia are drafting rules to govern the tokenization of various types of property and goods. Officials in Moscow have admitted they are acting in response to market demand and in the hope of attracting much-needed private investments.

According to the finance ministry, the respective legal framework and infrastructure should be in place within a few months. The department believes this will create new opportunities to put money into commodities that are not readily available to investors at the moment.

Russian government to attract new investments through tokenized assets

The Ministry of Finance of the Russian Federation (Minfin) is developing rules for the tokenization of different goods and property. The ultimate goal is to create digital financial assets (DFAs) based on them in order to expand possibilities for investment.

“We are now working on a concept for tokenization of various things, including goods,” Deputy Finance Minister Ivan Chebeskov announced, speaking to reporters on the sidelines of the international “Exchange commodity market” forum.

Quoted by the Russian business news agency Prime, he further explained that the process comes down to “wrapping” various types of property and goods into digital tokens, or DFAs as they are categorized in the country’s legislation.

By doing that, Russia hopes to allow interested parties to invest in certain commodities that are currently not available to investors. “Perhaps in the future, tokenization will make it possible to do this,” Chebeskov elaborated.

The new instrument may become an element of financial transactions and offer new ways of trading and investment, he added, according to a report published by Bits.media, a leading Russian outlet for crypto and blockchain-related news.

“That’s why we are developing the tool of tokenization, so that there is also an opportunity to attract investment, including private investors,” the high-ranking Minfin official emphasized, without specifying the assets he was referring to.

Chebeskov emphasized that his department is now looking into what needs to be done to finalize the legal framework and implement the necessary infrastructure. “We see demand from both banks and markets… I think we will complete this in the next few months,” he insisted.

Russia is still undecided on what to do with cryptocurrencies

Moscow has had a complicated approach regarding digital assets such as cryptocurrencies and tokens. While the finance ministry has been pushing for wider implementation, the Central Bank of Russia (CBR) has maintained a much more conservative stance. Crypto mining was legalized in Russia, but later restricted in some regions of the vast country.

Placed under sanctions over its war in Ukraine, including financial restrictions, Russia has demonstrated interest in using cryptocurrencies in foreign trade. An “experimental legal regime” (ELR) for such transactions was established with a law signed by President Vladimir Putin.

In March, Chebeskov revealed that Russia intends to employ its existing exchange infrastructure to test cryptocurrency trading. The Minfin views the Moscow Exchange (MOEX) as a key player in the trials and considers adding more participants, he said.

Earlier last month, Deputy Finance Minister Alexey Yakovlev announced that Russia may launch “organized trading” of digital currencies within the experimental legal regime. The CBR has since reiterated its opposition to allowing the free circulation of coins outside the ELR.

In the wake of Donald Trump’s executive order to establish a Strategic Bitcoin Reserve in the United States, Russia needs to consider using cryptocurrencies, urged the head of a leading business lobby group. Alexander Shokhin, president of the Russian Union of Industrialists and Entrepreneurs, also voiced support for the idea to conduct settlements with stablecoins backed by assets, including gold.

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