The two companies have conducted Russia’s first transaction using digital financial assets in accordance with the provisions of the country’s current legislation. The transaction involved the tokenization of debt issued by a third party and its subsequent acquisition.
Issuance and placement of digital financial assets by Russian companies
VTB Factoring, a subsidiary of Russian majority state-owned Vneshtorgbank (VTB), and fintech firm Lighthouse have announced the first digital financial asset (DFA) issuance and placement transaction. The latter is a broad legal term in Russian law that includes various types of digital assets, including cryptocurrencies, until dedicated legislation is passed.
As part of the transaction, commercial debt from an unidentified issuer was first tokenized on the platform of Lighthouse, a registered “information systems operator” authorized to issue and trade DFAs, and then VTB Factoring purchased the digital asset , the companies said in a press release.
In a report, RBC Crypto news outlet explained that by processing debt in the form of a DFA, parties are able to reduce the time it takes to obtain financing, while also taking advantage of relatively low transaction costs. This reduces the overall cost of the issuing entity. Anton Musatov, CEO of VTB Factoring, elaborated:
In contrast to standard factoring procedures, customers can assign commercial debts without entering into a service contract.It is sufficient for the issuer to issue the DFA [obtain] The factor agrees to buy.
In early June, news of the successful operation of DFA came when Lighthouse and Tinkoff Business, the e-commerce divisions of Russian neobank Tinkoff, announced the establishment of a platform to facilitate digital asset transactions. It will allow medium and large enterprises to raise funds using blockchain technology.
Later this month, Anatoly Popov, deputy chairman of the Sberbank Management Board, announced that the first DFA transaction on a platform developed by Russia’s largest bank will be completed within a month. The state-owned financial institution, also known as Sber, accounts for about one-third of all Russian banking assets and is also a registered information system operator authorized to issue digital financial assets.
The development in the DFA space comes at a time when Russian authorities are working to expand the country’s regulatory framework to more comprehensively regulate decentralized digital assets such as Bitcoin, as they are only partially covered by the existing Digital Financial Assets Act. A new bill “On Digital Currency” that aims to achieve this should be reviewed by Russian lawmakers in September.
Do you expect more digital financial assets to be traded and traded in Russia in the near future? Let us know in the comments section below.
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