Moscow Exchange to Issue Real Estate Blockchain Assets in 2024

The Moscow Exchange, the largest exchange in Russia, has announced plans to issue blockchain-based digital assets based on housing and real estate in 2024.

According to statements made by the platform’s director of digital assets, Sergei Kharinov, the exchange is in discussions with real estate and development companies to launch this type of operation in 2020.

In theory, the instruments would make it easier for qualified and unqualified investors to allocate a portion of their portfolios to construction and real estate investments.

Real estate developers and builders would also benefit from utilizing these digital assets, as they could raise funds directly from investors, thereby supplementing their traditional bank financing.

Kharinov stated that the instruments will most likely be issued as financial claims against the issuer, who has square meters.

According to General Director Denis Kondrakhin’s statements, Izvestia contacted Samolet Plus, a real estate developer who plans to launch digital investments in partnership with the Moscow Exchange.

In addition, he emphasized that this type of product “will assist in attracting a broad spectrum of investors with small checks to real estate investments.”

The Moscow Exchange is not the first Russian financial institution to issue housing and real estate-related blockchain-based digital assets.

There have been three prior issuances of similar instruments, with Samolet Plus participating in two.

The third issuance was carried out by a different company known as the G Group and offered unqualified investors a 10% profit over the cost of their investment, as well as a bonus derived from the increase in the square meter area of the construction, according to Pavel Sidorkin, director of products at Atomize Russia.

This platform facilitated the issuance of these digital assets.

These digital assets are already regulated and can only be issued by ten financial institutions previously approved by the Bank of Russia.

These institutions include Sberbank of Russia, Alfa Bank, Atomize, Lighthouse, St. Petersburg Exchange, and Blockchain Hub.