Expobank Introduces Diamond Tokenization in Russia
Expobank, a major financial institution with over 50 offices in Russia, has ventured into gemstone tokenization. The bank reportedly utilized the Multichain blockchain to launch the first tokenized diamonds in Russia, aiming to democratize the gemstone market and provide small investors access to these investment opportunities.
The tokens were associated with a three-carat diamond valued at 9 million rubles ($97,500). Expobank released 5,000 tokens for the diamonds, each representing 1/5000 of the total value, making each token worth less than $20.
These tokens, exclusively available to authorized investors, are set to mature in November 2026. At that time, their cash-out value will be determined using a dedicated calculator on a website that evaluates diamonds based on various characteristics or by utilizing a diamond price index.
National and International Advancements in Tokenization
Russia has permitted the issuance of Digital Financial Assets (DFAs) since 2021, regulating tokens representing real-world and traditional assets. However, most of these opportunities have recently emerged.
Kommersant reported movement in the DFA sector, with 140 tokenized products announced, reaching a market of $450 million. Nevertheless, not all of these tokens have been issued.
Furthermore, other financial institutions in Russia are exploring additional tokenization options. In October, the Moscow Exchange disclosed plans to issue housing and real estate digital assets to enable companies to secure financing from investors alongside traditional bank funding.
HSBC also entered the space by launching a gold bullion tokenization platform targeting a market exceeding $500 billion in Greater London. The platform allows investors to monitor and trade their gold holdings using HSBC’s system.
Hot Take
Russia Continues to Embrace Digital Asset Tokenization
Russia is experiencing significant developments in digital asset tokenization across various sectors. Expobank’s recent introduction of diamond tokenization marks a substantial leap toward democratizing investment opportunities previously limited to large-scale investors. Moreover, with the issuance of DFAs and exploration of diverse tokenization options by financial entities like HSBC and the Moscow Exchange, it’s evident that Russia’s financial landscape is embracing this innovative approach to investments. As more assets are being digitized and made accessible through blockchain technology, it’s anticipated that this trend will continue shaping Russia’s financial markets for years to come.
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