Russia Approves Asset Tokenization Concept

Russia approves asset tokenization concept.

The Russian Ministry of Finance, in collaboration with the Central Bank and federal executive authorities, has developed a concept for tokenizing real-world assets.

The government has already approved the document, and ministries have commenced its implementation.

The initiative aims to “introduce and develop digital innovations, including the active use of distributed ledgers.”

“Digital technologies will enhance the investment appeal of assets, increase their liquidity by reducing costs and lowering entry barriers for small private investors, and improve the quality of secured credit portfolios of financial organizations,” noted the Ministry of Finance.

The initial stage of tokenization will cover the following areas:

• property rights to various types of assets;
• exclusive rights to intellectual property, transactions with which are not subject to state registration;
• documentary securities;
• shares in the charter capital of limited liability companies.

The ministry believes that implementing the concept will create a modern and competitive environment for tokenization, fostering the diversification of investment instruments.

Additionally, the Ministry of Finance anticipates the emergence of new asset classes and increased liquidity of existing products.

“[…] blockchain will replace financial intermediaries, reduce transaction costs. The application of the technology will automate the execution of orders and investment decisions, reducing the need for human involvement and the likelihood of operational errors,” the department concluded.

Earlier, on February 10, the Russian State Duma passed a law in its third reading, establishing the procedure for the arrest and seizure of digital currencies in criminal proceedings. For these purposes, cryptocurrency is recognized as property.