Expobank Pioneers Introduction to Diamond Tokenization in Russia
Expobank, a leading financial institution in Russia, has taken a pioneering step by introducing tokenized diamond offerings in the country. According to local sources, Expobank utilized the Multichain blockchain platform to grant small investors access to the world of gemstone investments.
Expobank Issues the First Tokenized Diamond in Russia
Expobank, a financial institution with more than 50 branches across Russia, has ventured into gemstone tokenization. The bank has successfully issued Russia's first tokenized diamonds, using the Multichain blockchain, with the primary goal of making the gemstone market accessible to a wider audience, including small-scale investors.
The tokens represent a three-carat diamond with an estimated value of 9 million rubles (equivalent to USD 97,500). A total of 5,000 tokens were issued for the diamonds, and each token fractionally represents 1/5000 of the whole, making it an affordable investment, with each token priced at less than USD 20.
It's worth noting that these tokens were exclusively available to authorized investors. Their maturity date is set for November 2026, at which point the token's cash-out price will be determined through a dedicated online calculator. The assessment of diamonds is based on various attributes, such as size, purity, shape, and fluorescence. In cases where this tool is unavailable, a diamond price index will be used for pricing.
140 Tokenized Products Announced: Market Worth USD 450
Russia has allowed the issuance of Digital Financial Assets (DFAs) since 2021 when it regulated the issuance of tokens that represent real-world and traditional assets. While it took some time for these opportunities to gain traction, recent reports from Kommersant, a local news outlet, reveal that there has been notable progress in the DFA sector.
Over 140 tokenized products have been announced, collectively contributing to a market worth USD 450 million. However, it's important to note that not all the tokens announced have been released to the market.
Russian financial institutions are also actively exploring other avenues of tokenization. In October, the nation's largest stock exchange, the Moscow Exchange announced its plans to issue digital assets related to housing and real estate. This move will enable companies to secure funding from investors in addition to the traditional financing they receive from banks.
HSBC, one of the world's largest financial entities, recently introduced a tokenization platform for gold bullion. This platform targets a market valued at more than USD 500 billion in the Greater London area. With HSBC's platform, investors can conveniently monitor their gold holdings and engage in transactions with ease.
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