The Russian Ministry of Finance, in collaboration with the Central Bank and federal executive authorities, has developed a concept for the tokenization of real-world assets.
The government has already approved the document, and ministries have begun implementation.
The initiative aims to "implement 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 the entry threshold for small private investors, as well as improve the quality of secured credit portfolios of financial organizations," the Ministry of Finance noted.
In the first phase of tokenization, the following areas will be targeted:
- ownership rights to various types of property;
- exclusive rights to intellectual property results that do not require state registration;
- documentary securities;
- shares in the authorized capital of limited liability companies.
The ministry believes that implementing this concept will create a modern and competitive environment for tokenization, fostering diversification of investment instruments.
Additionally, the Ministry of Finance predicts the emergence of new asset classes and increased liquidity for existing products.
"[…] blockchain will replace financial intermediaries, reduce transaction costs. The application of technology will automate the execution of orders and investment decisions, reducing the need for human involvement and the likelihood of operational errors," the agency concluded.
It is worth noting that on February 10, the State Duma of the Russian Federation adopted a law in its third reading that establishes the procedure for the arrest and seizure of digital currencies within criminal proceedings. For these purposes, cryptocurrency is recognized as property.