The largest exchange in Russia, the Moscow Exchange, has made plans to start issuing digital real estate assets in 2024. This will make it easier for qualified and unqualified investors to invest some of their portfolio in real estate assets, claims Sergei Kharinov, the platform's director of digital assets.
The Moscow Exchange intends to publish housing-related digital assets.
The largest exchange in Russia, the Moscow Exchange, has made plans to issue housing and real estate blockchain-based digital assets starting in 2024. According to statements made by Sergei Kharinov, the platform's director of digital assets, the exchange, which had previously suggested to complete a similar issuance back in August 2022, is in discussions with housing and development businesses to begin this kind of operation next year.
According to the proposals, both qualified and unqualified investors would be able to invest a portion of their portfolios in real estate and construction obligations. When adopting these digital assets, real estate developers and builders would also gain the chance to acquire money directly from investors, bringing another source of income to complement the conventional financing from banks.
According to Kharinov, it is most likely that the instruments will be issued as square-meter-based financial claims against the issuer.
According to General Director Denis Kondrakhin's claims, Samolet Plus, a real estate developer, intends to introduce digital investments in collaboration with the Moscow Exchange. Furthermore, he emphasized that this type of product "will help attract a wide range of investors with small checks to real estate investments."
Legislation and prior attempts
The Moscow Exchange is not the first financial organization in Russia to experiment with producing blockchain-based real estate and housing digital assets. There have been three previous issuances of these securities, with Samolet Plus taking part in two of them.
According to Pavel Sidorkin, director of products at Atomize Russia, the platform that facilitated the issuance of these digital assets, the third issuance was carried out by a different company known as the G Group and allowed unqualified investors to profit 10% over the cost of their investment, including a bonus derived from the increase of the square meter area of the construction.
Only ten financial organizations, including Sberbank of Russia, Alfa Bank, Atomize, Lighthouse, St. Petersburg Exchange, and Blockchain Hub, are authorized to issue these digital assets, which are already governed.
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