Moscow Exchange Plans to Democratize Real Estate Investment with Blockchain-based Assets
Moscow Exchange to Introduce Blockchain-based Digital Financial Assets
In an effort to revolutionize real estate investment, the Moscow Exchange has announced its plans to issue blockchain-based digital financial assets (DFA) by 2024. Sergei Kharinov, the director of digital assets at the exchange, revealed this groundbreaking initiative on Monday. The primary objective is to create a new funding avenue for developers while offering investors a lower entry threshold, minimum return, an inflation hedge, and profits linked to the rise in square meter costs in housing complexes.
Collaboration with Leading Financial Entities
The management of these digital assets will be entrusted to renowned entities such as the National Settlement Depository (NSD), Sberbank of Russia, Alfa Bank, St. Petersburg Exchange, and Blockchain Hub. These institutions, sanctioned by the Bank of Russia, will play a crucial role in issuing these assets. The initiative aims to facilitate programmable transactions and reduce entry barriers for both retail and qualified investors.
Expanding Investment Opportunities
This move follows in the footsteps of successful investment opportunities provided by entities like Samolet Plus and G Group. The introduction of blockchain-based assets will enable direct fundraising for builders, introducing a novel approach to real estate investment.
Focus on Security and Investor Protection
While a regulatory framework for smart contracts already exists, the Central Bank of Russia (CBR) is pushing for short-term regulations to strengthen security measures, ensure investor protection, and enhance information disclosure. The CBR emphasizes the importance of independent audits before deploying these assets to establish trust and security in this emerging form of investment.
This groundbreaking initiative by the Moscow Exchange is set to revolutionize the real estate investment landscape, offering greater accessibility and profitability. By leveraging blockchain technology, investors and developers alike will benefit from a transparent and efficient investment ecosystem.