Bank of Russia Releases Report on Real-World Asset Tokenization

The Bank of Russia has unveiled a report dedicated to the specifics of tokenizing real-world assets (RWA).

According to the regulator, converting geographically tied assets into a digital format enhances their potential by increasing liquidity and making them more accessible to a broader range of investors.

The central bank noted that globally, attitudes towards tokenization are still forming, and comprehensive approaches to classification and regulation have yet to be established. Currently, the RWA market is estimated to be worth up to $30 billion.

The future development of this segment will require additional infrastructure adjustments and regulatory measures.

“In Russian legislation, the concept of digital rights is most applicable to tokens. This already allows for the digitization of various rights to objects, but certain assets raise questions that need discussion,” the regulator noted.

Overall, the report focuses on examining specific practical examples of real-world asset tokenization for further discussion with market participants regarding the characteristics, needs, and development prospects of this field.

The central bank is accepting proposals and comments on the issues under consideration until December 27.

In September, a law came into effect in Russia, permitting foreign trade settlements and cryptocurrency exchange trading within experimental legal regimes.

The central bank plans to conduct its first cross-border payments by the end of 2024.