At the end of 2023, the Belarusian cryptocurrency exchange Dzengi.com announced its expansion into the markets of Azerbaijan, Armenia, Georgia, Moldova, Tajikistan and Turkmenistan.
According to Valery Usenko, a manager in Dzengi.com’s private capital department, the current rally in digital gold is creating wide opportunities for venues that support multiple asset classes. He told ForkLog about the prospects for tokenisation, the arrival of spot bitcoin ETFs and BlackRock’s role in the segment.
ForkLog: At the time, FTX offered trading in tokenised stocks and aggressively promoted “digitising assets on the blockchain”. It seems that after the exchange’s collapse these ideas have been heard less. Is that so?
Valery Usenko: In fact, the market for tokenised assets is enjoying a genuine boom.
Against the backdrop of approvals for products such as bitcoin-based ETFs in the United States and ETNs in the United Kingdom, institutional investors’ attitudes to the industry are changing. In March, exchange-traded funds saw trading volumes reach $111bn.
It is not only about money flowing in, but also about how the technology is positioned. In January 2024 tokenisation, alongside artificial intelligence, became one of the central themes of the World Economic Forum in Davos. It has moved beyond the Dubai start-up phase and become a topic for global economic debate.
Moreover, a mania for tokenised real‑world assets (RWA) has gripped markets. They occupy a large share and are advancing even in heavily regulated jurisdictions such as the United States of America and the European Union.
U.S. government bonds on blockchains have been the engine of the segment, and there are now numerous projects digitising property, equities and precious metals.
It is important to note that RWAs catalyse the networks on which they are built. For example, tokens backed by diamonds were recently issued on the Avalanche blockchain. The network is very popular in the segment, so its native token, AVAX, has delivered a year-to-date return five times higher than bitcoin.
ForkLog: How does the rise in the price of the original cryptocurrency affect the situation?
Valery: Traders are taking greater interest in altcoins and tokenised assets. They are also watching the staggering gains in U.S. tech stocks and the strong performance of the S&P 500 index.
High volatility and the onset of a bull market have woken dormant and hesitant users. Many Dzengi.com clients are broadening their portfolios to reduce risk and increase potential returns over time.
Disclaimer: This material is for information purposes. Investing involves the risk of loss. More details — on Dzengi.com.
ForkLog: Who is showing interest in tokenised assets—cryptocurrency investors or representatives of traditional finance?
Valery: Both, because it is a very convenient way to invest.
You can pick virtually any instrument—commodities, equities, indices, currencies—and trade without opening a brokerage account or buying the underlying real asset. You earn in the same way from the rise of popular instruments: from gold to Apple and Tesla shares, but without risks associated with operating in other jurisdictions.
On Dzengi.com you do not pay fees to managers or brokers. Under Belarusian law, all transactions for the purchase, sale and exchange of digital tokens are exempt from taxes.
ForkLog: What other advantages does the platform offer?
Valery: Dzengi.com is one of the first fully legal crypto exchanges in the world, not only in the post-Soviet space. Most venues, to varying degrees, existed in a grey zone, whereas we have always operated in strict compliance with the laws of the Republic of Belarus.
Regulation imposes certain limitations, but we consistently choose transparency and legitimacy and take all possible measures to safeguard our clients’ investments.
Dzengi.com is a fully legal crypto platform with a wide selection of cryptocurrencies and tokenised assets. Clients can invest in bitcoin or Ethereum, and then allocate those funds into Nvidia shares. All of this happens in a single account on one trading venue.
ForkLog: Who is your typical client?
Valery: There is beauty in diversity. It is impossible to describe a typical client, but I will try to group Dzengi.com users by behaviour.
First, people focused on accumulating core assets that have shown the strongest market efficiency: bitcoin and the S&P 500.
The second group comprises medium‑term investors who sometimes use leverage and hold positions for up to six months.
Finally, many traders profit from short‑term volatility and prefer to lock in gains quickly.
Clients have different needs: some come with defined financial plans and invest regularly, while others periodically buy or sell large volumes of cryptocurrency.
ForkLog: In 2023, BlackRock CEO Larry Fink said that the company is studying the digital-asset ecosystem, including the tokenisation of stocks and bonds. When do you think BlackRock will move from words to real action?
Valery: It already has: assets under management at BlackRock’s IBIT fund exceeded 200,000 BTC. This is the fastest growth of any ETF in the history of the U.S. market. An absolute record.
Secondly, many blockchain projects in the realm of real finance are actively implementing tokenisation. I would like to note the achievements of Ripple, whose cross‑border payments technology is used by large banks around the world.
Tokenisation has already become part of the financial world. As of March 13, 2024, the volume of tokenised U.S. bonds reached $732bn. And it continues to grow.
ForkLog: Do you think it is possible to tokenise all financial assets?
Valery: You can issue tokens for anything: square metres, futures, commodities. There are no technical limitations.
But they will not replace every asset in the world. Some clients will continue to invest in the real financial sector, which is also interested in attracting funds.
In a number of cases, tokenisation is the ideal solution. For example, private companies, depending on the jurisdiction, can issue digitised shares, and retail investors can earn across any market. It is far cheaper than IPO and working with brokers.