The Moscow Exchange is taking steps to democratize real estate investment by planning to introduce blockchain-based digital financial assets (DFA) by 2024, as stated by Sergei Kharinov, the director of digital assets at the exchange. This initiative, announced recently, is aimed at creating a fresh avenue for developers to secure funding while offering investors a more accessible entry point, a guaranteed minimum return, a hedge against inflation, and the opportunity to profit from the increasing value of square meters in housing complexes.
These digital assets will be overseen by entities such as the National Settlement Depository (NSD), Sberbank of Russia, Alfa Bank, St. Petersburg Exchange, and Blockchain Hub. These institutions are among the ten financial entities authorized by the Bank of Russia to issue such assets. The objective of this initiative is to streamline programmable transactions and lower the entry barriers for both retail and qualified investors.
This move aligns with previous successful investment opportunities provided by entities like Samolet Plus and G Group. The blockchain-based assets are set to enable direct fundraising for construction projects, offering an innovative approach to real estate investment.
In this context, the Central Bank of Russia (CBR) is advocating for short-term regulations to enhance security, ensure investor protection, and ensure transparent information disclosure, despite the existing regulatory framework for smart contracts. The CBR emphasizes the need for independent audits before deployment to instill trust and security in this emerging form of investment.
