In an effort to democratize real estate investment, the Moscow Exchange is planning to issue blockchain-based digital financial assets (DFA) by 2024, according to Sergei Kharinov, the director of digital assets at the exchange. This initiative, announced on Monday, aims to create a new funding avenue for developers and provide investors with a lower entry threshold, minimum return, an inflation hedge, and profits linked to the rise in square meters cost in housing complexes.
The digital assets will be managed by entities such as the National Settlement Depository (NSD), Sberbank of Russia, Alfa Bank, St. Petersburg Exchange, and Blockchain Hub. These institutions are among ten financial entities sanctioned by the Bank of Russia to issue such assets. The initiative is designed to facilitate programmable transactions while reducing entry barriers for both retail and qualified investors.
This move follows similar profitable investment opportunities offered by entities like Samolet Plus and G Group. The blockchain-based assets will allow direct fundraising for builders, offering a novel approach to real estate investment.
The Central Bank of Russia (CBR) is pushing for short-term regulations to bolster security, ensure investor protection, and provide information disclosure. This comes despite an existing regulatory framework for smart contracts. The CBR insists on independent audits before deployment to enhance trust and security in this new form of investment.
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