Kofi Mensah In a groundbreaking development within the Russian financial sector, Expobank has successfully launched the country’s inaugural tokenized diamond transaction. Local news sources indicate that Expobank utilized the capabilities of the Multichain blockchain platform to issue these tokens, effectively making the value of gemstone investments more accessible to individual investors by breaking down the value of a diamond into 5,000 divisible parts.
Expobank At the Forefront of Diamond Tokenization in Russia
As a notable player in the Russian banking sector, boasting an extensive network of over 50 branches, Expobank has made a strategic foray into the niche of gemstone tokenization. The bank’s issuance of tokenized diamonds via the Multichain blockchain reflects its objective to make gemstone investments more inclusive, allowing retail investors to partake in these traditionally exclusive markets.
The tokens represent collective ownership in a diamond valued at 9 million rubles (approximately $97,500). By issuing 5,000 tokens, each token represents a 1/5,000 stake, bringing the individual token price to an affordable figure below $20.
Authorized investors are the exclusive recipients of these tokens, which are slated for repayment in November 2026. At this juncture, the tokens’ cash-out value will be ascertained through a specialized calculator available on a website that appraises diamonds based on multiple factors such as size, clarity, cut, and fluorescence.
Should this valuation method be inaccessible, the token price will then be determined by a standardized diamond price index.
The Landscape of National and Global Tokenizations
Since 2021, Russia has been a proponent of token issuances, termed Digital Financial Assets (DFAs), with legislation in place governing the tokenization of tangible assets and other conventional asset types. Recent times have seen a surge in such DFA activities, as reported by Kommersant, a local news agency. There have been announcements for 140 tokenized products, amassing a potential market value of $450 million, although not all have been fully issued.
Financial institutions in Russia are actively exploring a variety of tokenization ventures. For instance, the Moscow Exchange, Russia’s premier exchange, divulged plans in October to roll out digital assets based on housing and real estate. This initiative is anticipated to open new channels for corporate financing, diversifying beyond the traditional bank lending avenues.
Internationally, HSBC, a global banking heavyweight, has also stepped into the tokenization arena with a platform dedicated to tokenizing gold assets. This platform is poised to serve the bustling market of over $500 billion in the Greater London area, providing investors with enhanced capabilities to manage and transact their gold investments via HSBC’s proprietary system.
The evolution of tokenized assets, particularly in the diamond sphere within Russia, marks a significant transition in investment accessibility and asset digitization.
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