The Moscow Exchange, Russia’s premier trading platform, has declared its intention to release digital assets tied to housing and real estate by the year 2024. Sergei Kharinov, who oversees digital assets on the platform, had previously floated a similar proposal in August of 2022. Presently, the Moscow Exchange is in negotiations with housing development firms to initiate this enterprise in the coming year.
The financial instruments in question are designed to make it more accessible for both accredited and non-accredited investors to allocate a portion of their investment portfolios to real estate and construction ventures. Moreover, this innovation is poised to be advantageous for real estate developers and construction companies. These entities would be able to garner investment directly from investors, supplementing their conventional bank-based funding sources.
Kharinov indicated that these financial instruments are likely to be structured as monetary claims against the issuing entity, which will be measured in square meters.
In a recent interaction with Izvestia, Samolet Plus—a real estate development firm planning to collaborate with the Moscow Exchange—echoed these sentiments. According to Denis Kondrakhin, the company’s General Director, such digital assets will “enable a broader investor base to engage in real estate investment, even with smaller investment amounts.”
Earlier Ventures and Regulatory Framework
The Moscow Exchange is not venturing into uncharted territory by issuing digital assets tied to real estate and housing in Russia. Prior to this, three such issuances have taken place, with Samolet Plus participating in two of them.
Another firm, known as the G Group, executed the third issuance. This allowed non-accredited investors to realize a 10% return on their investments, which also included a bonus correlated with the growth in square meterage of the property, as mentioned by Pavel Sidorkin, the product director at Atomize Russia—a platform that facilitated these digital asset issuances.
It should be noted that these types of digital assets fall under existing regulations. Only ten financial institutions have received approval from the Bank of Russia to issue such assets. This list includes notable names like Sberbank of Russia, Alfa Bank, Atomize, Lighthouse, the St. Petersburg Exchange, and Blockchain Hub.
We invite your thoughts on the Moscow Exchange’s upcoming foray into digital assets linked to real estate and housing in Russia. Please share your insights in the comments section below.
Frequently Asked Questions (FAQs) about Moscow Exchange Digital Real Estate Assets
What is the Moscow Exchange planning to do by 2024?
The Moscow Exchange, Russia’s largest trading platform, is planning to issue digital assets tied to housing and real estate by the year 2024.
Who is Sergei Kharinov and what does he say about the initiative?
Sergei Kharinov is the director of digital assets for the Moscow Exchange. According to him, the planned digital assets are designed to make it easier for both accredited and non-accredited investors to allocate funds to real estate and construction sectors.
How will real estate developers benefit from these digital assets?
Real estate developers and construction companies stand to benefit from this initiative as it will allow them to raise funds directly from investors. This will supplement their traditional sources of financing, which often come from banks.
Has anything like this been done before in Russia?
Yes, three issuances of digital assets tied to real estate have previously occurred in Russia. The company Samolet Plus was involved in two of these issuances. The third was executed by a firm called the G Group.
What is the regulatory status of these digital assets in Russia?
These types of digital assets are already regulated in Russia. Only ten financial institutions have received the green light from the Bank of Russia to issue such assets. This approved list includes Sberbank of Russia, Alfa Bank, Atomize, Lighthouse, the St. Petersburg Exchange, and Blockchain Hub.
What types of investors are these digital assets targeting?
The digital assets are intended to attract a wide range of investors, including both accredited and non-accredited individuals. They are designed to make real estate investment more accessible, even for those with smaller investment amounts.
What will be the form of these digital assets?
According to Sergei Kharinov, these digital assets will most likely be issued in the form of monetary claims against the issuer, and the value will be measured in square meters.
What do we know about the companies that are likely to collaborate with the Moscow Exchange?
Samolet Plus, a real estate developer, plans to launch digital investments in partnership with the Moscow Exchange. Denis Kondrakhin, the General Director of Samolet Plus, stated that this product will attract a broad investor base to real estate investments.
Public opinions about this upcoming initiative by the Moscow Exchange can be shared in the comments section of articles and announcements related to this topic.
More about Moscow Exchange Digital Real Estate Assets
- Moscow Exchange Official Announcement
- Interview with Sergei Kharinov
- Regulatory Framework for Digital Assets in Russia
- Previous Issuances by Samolet Plus and G Group
- Bank of Russia’s List of Approved Financial Institutions for Digital Assets
- Overview of Real Estate Digital Assets in Russia