The Bank of Russia is proposing a new regulatory approach that would allow domestic companies to issue digital financial assets (DFAs) on public blockchain networks such as Ethereum, according to local reports. The initiative is designed to connect Russian businesses with international investors and to make cross-border settlements more practical through blockchain-based infrastructure.
Bank of Russia Governor Elvira Nabiullina said the proposed rules would be important both for attracting international investment and for facilitating international settlements. If adopted, the changes would mark a notable shift in how Russian digital financial assets are structured, distributed, and potentially traded.
From Domestic Platforms to Open Blockchains
At present, Russian digital financial assets are generally issued on domestic platforms and are mainly available to qualified investors. Under the proposed changes, companies would be able to place these instruments on public networks, opening the possibility for broader investor participation. The report suggests that such assets could potentially be listed on international exchanges or integrated into decentralized finance platforms, significantly expanding their reach beyond Russia’s current framework.
In practical terms, DFAs represent financial rights in digital form. Moving issuance to open networks could give Russian businesses access to deeper pools of global liquidity and a wider set of market participants than those available through the country’s existing closed systems. It also signals a willingness by regulators to use public blockchain rails, rather than relying solely on domestic permissioned infrastructure.
The proposal may also carry strategic importance for Russian issuers seeking new channels to raise capital. By broadening where and how these instruments can be distributed, businesses could enter markets that were previously inaccessible and reach interested investors through more flexible digital formats.
Lower Friction, Faster Issuance
One of the main arguments in favor of DFAs is efficiency. Industry participants cited in the report said banks are actively developing these instruments as an alternative funding option because issuance can take only a few days and does not require registration. By contrast, preparing a traditional bond issuance can take weeks or even months.
Blockchain technology and smart contracts are also expected to simplify operational workflows. For issuers, that could mean lower administrative overhead and faster settlement. For investors, it may improve access, transparency, and execution speed. These efficiency gains are part of the broader case for expanding the role of tokenized financial instruments in Russia’s capital markets.
The proposed reforms therefore go beyond a simple legal adjustment. They reflect an effort to modernize financing channels using tokenization and blockchain-based settlement tools, while also making the issuance process more competitive relative to legacy instruments such as corporate bonds.
Still a Small Market Today
Despite Russia’s adoption of a digital financial assets law in 2020, the market remains relatively small compared with the country’s traditional bond sector. According to Valery Tumin, a member of the State Duma’s expert council on digital economy development, DFA issuance currently accounts for only 2% of corporate volumes.
That figure highlights both the limitations of the market today and the potential room for expansion. While the legal basis for DFAs already exists, the ecosystem has so far developed at a modest pace. Constraints around distribution, platform access, and market structure appear to have limited wider adoption. The central bank’s latest proposal aims to address some of those barriers by moving from closed domestic issuance channels toward open blockchain infrastructure.
Even so, the report notes that technical issues still need to be resolved. This suggests that implementation will depend not only on regulatory approval but also on infrastructure readiness, compliance design, and market adoption by financial institutions and issuers.
Long-Term Growth Outlook
Although the current market is small, some analysts see substantial upside. Natalia Milchakova of Freedom Finance Global told Izvestia that the Russian DFA sector could grow to 13 trillion rubles, or about $160 billion, by 2030. According to the report, that would represent a 20-fold increase compared with the level of investment achieved in 2025.
If that projection proves accurate, DFAs could evolve from a niche funding mechanism into a significant component of Russia’s corporate finance landscape. Much of that growth would likely depend on broader investor access, stronger secondary market liquidity, and successful integration with international trading venues or decentralized financial infrastructure.
The scale of the forecast also underlines why regulators and financial institutions are paying closer attention to tokenized assets. Faster issuance, potentially lower costs, and broader capital access make the sector attractive, especially in an environment where companies are looking for more flexible ways to raise funds and settle transactions across borders.
Why the Proposal Matters
The Bank of Russia’s plan points to a broader policy direction: using blockchain-based financial instruments to link the domestic economy with international capital markets. Allowing DFA issuance on open networks such as Ethereum could give Russian companies a new route to funding while also supporting cross-border settlements through programmable digital infrastructure.
At the same time, the proposal remains just that—a proposal. Its long-term impact will depend on how the final rules are written, how technical challenges are addressed, and whether issuers and investors embrace the model at scale. Still, the initiative is a notable sign that Russia is considering a more open and globally connected digital asset framework, one that could reshape how corporate financing is conducted in the years ahead.