Russia's Ministry of Finance has approved a concept for asset tokenization to enhance investment appeal and liquidity.
The Russian government, through the Ministry of Finance and in collaboration with the Central Bank and other federal authorities, has approved a new concept focusing on the tokenization of real-world assets.
This initiative is designed to promote digital innovation by leveraging distributed ledger technology. Implementation has already commenced across relevant ministries.
According to the Ministry of Finance, the adoption of digital technologies is expected to enhance asset investment appeal and liquidity, while lowering costs and barriers for small investors. This move is anticipated to improve the quality of secured credit portfolios for financial institutions.
The initial phase of the tokenization initiative will concentrate on several key areas, including:
- ownership rights of various property types;
- exclusive rights to certain intellectual property that does not require state registration;
- documentary securities;
- shares in limited liability companies.
The Ministry envisions this concept will lead to a more competitive environment for tokenization, encouraging a wider variety of investment options. It also predicts the emergence of new asset classes and improved liquidity for existing ones.
Furthermore, the Ministry highlighted that blockchain technology could diminish the role of financial intermediaries, cut transaction costs, and automate order execution and investment decisions, thereby reducing human error.
In a related development, the State Duma recently passed a law recognizing cryptocurrency as property, which establishes a framework for the seizure of digital currencies during criminal investigations.
