Russia’s largest market for equities, bonds, and derivatives, the Moscow Exchange, intends to launch a product based on digital financial assets by the end of the year, an executive has revealed. To facilitate the placing of digital tokens, the trading platform already has an arrangement with a partner.
Russia’s Top Exchange to Facilitate Trading of Financial Instruments Based on Digital Assets
In a recent interview, a top-ranking MOEX representative stated that a product built on digital financial assets (DFAs), is planned for 2022. The announcement comes after a turbulent period for Russia’s leading stock market when it had to deal with market volatility, sanctions pressure, and cyberattacks earlier this year.
Alongside ‘digital rights,’ DFAs is currently the main legal term in Russian law that applies to various digital assets, including cryptocurrencies according to some statements by Russian officials, but primarily those that have a specific issuer.
MOEX has been working with one partner to create a digital tokens project, Andrey Burilov (Managing Director Information Technology) told Tass. He explained that this company is from the actual economy.
The main point here is to link the company’s fixed assets with the investment market using digital technologies.
Burilov stressed that digitizing commodities adds value to market participants. MOEX will use DFAs as a way for its customers to invest in a completely new method to protect information security.
Burilov also noted that it was a new product on the market that poses a challenge in terms of its implementation. This includes everything from software to regulation. He also pointed out that integration with existing exchange systems and clients is another challenge.
The head of the Financial Market Committee of the lower house stated in July that the Russian cryptocurrency exchange was the most suitable to handle crypto transactions. Anatoly Ashakov suggests that the Moscow Exchange may host the crypto trading platform.
Are you positive that MOEX will be able to trade digital assets before the end of this year? Comment below.
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