Moscow Exchange Plans to Issue Real Estate Digital Assets by 2024

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The Moscow Exchange, the largest exchange in Russia, has announced plans to issue real estate digital assets in 2024. According to Sergei Kharinov, director of digital assets for the platform, this will lower the entry barrier for qualified and unqualified investors to put part of their portfolio into real estate assets.

Moscow Exchange Plans to Issue Housing Digital Assets

The Moscow Exchange, the largest exchange in Russia, has announced plans to issue housing and real estate blockchain-based digital assets for 2024. The exchange, which had proposed to complete a similar issuance back in August 2022, is involved in talks with housing and development companies to start this kind of operation next year, according to statements from Sergei Kharinov, director of digital assets of the platform.

The instruments would ostensibly lower the bar for qualified and unqualified investors to put part of their portfolios into construction and real estate commitments. Real estate developers and builders would also benefit from using these digital assets, having the opportunity to raise funds directly from investors and adding this income source to the traditional financing from banks.

Kharinov stated that, most likely, the instruments will be issued in the form of monetary claims against the issuer who has square meters.

Izvestia contacted Samolet Plus, a real estate developer that plans to launch digital investments in partnership with the Moscow Exchange, per General Director Denis Kondrakhin’s statements. In addition, he stressed that this kind of product “will help attract a wide range of investors with small checks to real estate investments.”

Previous Attempts and Legislation

The Moscow Exchange is not the first financial institution to dabble in issuing blockchain-based housing and real estate digital assets in Russia. Three issuances of such instruments have happened before, with Samolet Plus being involved in two.

The third issuance was executed by another company called 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, said Pavel Sidorkin, director of products of Atomize Russia, the platform that 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, including Sberbank of Russia, Alfa Bank, Atomize, Lighthouse, St. Petersburg Exchange, and Blockchain Hub.

What do you think about the planned issuance of housing or real estate digital assets in Russia by the Moscow Exchange? Tell us in the comments section below.