Moscow Exchange Gearing To List Digital Financial Assets

The Moscow Exchange is the largest market in Russia for bonds, equities and derivatives and it is now planning on launching a product by the end of the year that would be focused on digital financial assets.

According to an executive, the trading platform is currently working with a partner in order to start offering digital tokens to its clientele.

New product

The Moscow Exchange (MOEX)’s high-ranking representative recently indicated in an interview that it was planning on launching a product in 2022 that would be based on digital financial assets (DFAs).

This announcement comes after the stock market in Russia underwent a turbulent period in which it had to deal with extreme levels of volatility, cyberattacks, and pressure of international sanctions earlier in 2022.

Other than ‘digital rights’, currently the primary legal term that is used to refer to digital assets in the Russian Federation is digital financial assets (DFAs).

While this term also encompasses cryptocurrencies, officials have clarified that it is to refer to assets that boast a specific issuer.

Andrey Burilov, a member of the Board of the Moscow Exchange and the Managing Director for Information Technology, disclosed that MOEX is working with a partner to offer digital tokens as well.

He noted that their partner was a company part of the real economy and the purpose is to use digital technologies to link the fixed assets of the company with the investment market.

Use of DFAs

Burilov stated that market participants can enjoy more value when commodities are digitized.

He also said that digital financial assets (DFAs) would be used by MOEX to offer another investment tool to its clients, which would provide a new way of ensuring information security.

Burilov went on to say that the primary challenge in the implementation is that this product is a completely new one in the market, starting from its software to its regulation.

Moreover, he also added that they also have to overcome the challenge of integrating it into the existing system of the exchange and its clients.

Russia’s progress

Speaking at the lower house of the Russian parliament back in early July, the Financial Market Committee’s head had talked about a digital asset exchange in Russia.

Anatoly Aksakov had said that they should consider introducing a Russian digital asset exchange for processing local crypto transactions.

He had also suggested that the Moscow Exchange establish this crypto trading platform. This idea had been put forward after the Russia and Ukraine conflict began.

Due to the Russian invasion, Moscow found itself under sanctions which prompted numerous crypto exchanges operating in the country to halt their operations.

This has resulted in a lot of problems for Russian crypto users who were unable to access their digital assets that were on these platforms.

The sanctions also pushed the Russian central bank into reconsidering its stance on cryptocurrencies, after it had advocated for a blanket ban on these digital currencies.