The market of digital financial assets (DFA) continues to grow and develop, driven by the high key interest rate and the fact that the essential technological issues related to the issuance and sales of DFAs have been resolved. However, the demand for DFAs remains concentrated in the domestic market. Which of the market development drivers will remain crucial? And most importantly, will digital financial assets be able to not only join the ranks of the commonly used financial instruments for Russian businesses but also become a solution for global payments? Invest Foresight interviewed Russian experts, financial industry professionals and businesspeople.
Vyacheslav Mishchenko, expert of the Presidential Academy, Visiting Professor at Universidad Torcuato di Tella
– Digital financial assets are not just a passing trend but a practical tool for small and medium-sized businesses. Currently, 75% of issuances consist of corporate short-term debt. The key benefits of DFAs include a fast issuance process (3-7 days) and lower costs. However, risks remain, such as a weak secondary market and the absence of standardized reporting.
For businesses, DFAs offer a way to raise capital at an annual rate of 14-18%, making them a more affordable alternative to bank loans, which often exceed 20%. Investors can expect returns of 14-22%, though liquidity remains close to zero. If the key interest rate drops to 12-14%, DFAs will likely become a niche option for risk-tolerant investors.
Currently, DFAs function as a domestic financial instrument in Russia, with potential for integration into the EAEU (e.g., settlements with Belarus and Kazakhstan). However, global expansion is hindered by sanctions and the risk of non-recognition in Western jurisdictions. Additionally, issuances in currencies like the yuan and dirham come with inherent currency risks.
Alexander Ruyev, founder, SkyCapital
– The growth of Russia’s digital financial assets market is driven by several key factors: evolving regulations, sanctions pressure, and the demand for alternative financial instruments among businesses and investors. In 2025, this growth could accelerate, particularly if more B2B solutions and liquid instruments tailored for institutional investors emerge.
Today, DFAs have moved beyond the conceptual stage to become a practical financial tool addressing real business needs. The active involvement of major issuers and growing investor interest confirm the model’s viability. However, the future of DFAs will largely depend on improving secondary market liquidity and enhancing the infrastructure for issuance and circulation. We believe DFAs are not just a short-term phenomenon but a long-term financial innovation. As the market evolves, DFAs could potentially transform into a full-fledged ecosystem of tokenized assets.
Currently, Russian digital financial assets are mainly geared toward the domestic market, but they have the potential to expand internationally. The key challenge lies in establishing a global infrastructure for the cross-border circulation of tokenized assets. If Russian DFAs gain recognition in friendly countries, they could open a new niche for international investors and businesses.
Artem Genkin, Professor, CEO of Consulting & Analytical Union
– For domestic businesses, digital financial assets are poised to become an appealing borrowing option. With the domestic non-banking financial market contracting by nearly 20% in 2024, banks – traditionally the main providers of borrowed funds – have adopted a more conservative, cautious, and even capricious stance. As a result, for some corporate borrowers, their own client base and professional private investors may prove to be a more profitable and dependable source of funding. DFAs that incorporate loyalty program features are likely to emerge as a favored solution for this segment.
In my view, DFAs can play a significant role in the international settlements of Russian companies, not as an independent payment method, but rather as a form of collateral or a guarantee asset. Currently, stablecoins often fulfill this role, though they do not always align perfectly with customs and tax regulations.
Alexei Ilyasov, CEO, Atomyze
– It has been two years since the first DFA issue was executed. While this may seem like a very short period in the context of mature markets, DFA placements have seen explosive growth: according to the Central Bank of Russia, in 2024, Russian citizens purchased DFAs worth RUR 159 billion. The number of users has also risen sharply, with roughly 250,000 people now holding wallets with at least one DFA issuing operator. The launch of the fully operational secondary market may serve as a key driver for DFA development in 2025 as it will further boost DFA growth.
DFAs hold major potential in both B2B and B2C sectors. Although the DFA market is currently dominated by retail investors, corporations account for the majority of transaction volumes. In the long-term, we expect DFAs to primarily become a retail product, with individual investments driving the bulk of market activity as DFAs become more widely accessible.
As regards DFA debt instruments for retail investors, yields in 2024 often surpassed deposit interest rates and even were significantly higher in certain cases. This presents a strong incentive for retail investors. For instance, in December 2024, T-Investments and Atomyze issued eight DFAs with an annual yield of up to 27.5%.
Additionally, DFAs help diminish the barriers to entry for expensive assets such as venture projects, real estate, diamonds, and rare art pieces. By issuing multiple tokens for a single asset, DFAs make the latter more accessible, involving a larger number of investors.
Artem Saratikyan, Head of Corporate Finance at CarMoney fintech service
– In late 2023, the CarMoney fintech service was among the first ones in its segment to issue a DFA worth RUR40 million. As an issuer, we find this tool particularly appealing due to its fast placement as well as flexible funding terms. The costs for arranging a DFA issue in the form of a monetary claim (that is, a bond with a fixed coupon) are significantly lower than those associated with other debt instruments. Potentially, the issuer can share these profits with investors through offering higher yields on DFAs compared to the public market. However, for microfinance organizations (MFOs), the same regulatory restrictions apply to DFAs as to other funding sources, with DFAs issued by MFOs available solely to qualified investors.
We view the DFA market as another source of liquidity that offers emerging segments and an investor base. What initially started as a trendy topic is gradually evolving into an efficient way to raise capital, particularly in the domestic market. Going forward, we will assess the feasibility of issuing DFAs compared to other debt tools.