Russia’s Digital Asset Market Is Growing at Record Pace, Sberbank Report Finds

• Russia’s digital financial asset (DFA) market surged to 684 billion rubles in 2024, marking a sevenfold increase from the previous year.
• Debt-based DFAs dominate, with Norilsk Nickel’s employee incentive program accounting for 77% of indexed DFAs.
• Despite rapid growth, the market remains fragmented, with a lack of centralized infrastructure hindering efficiency.

Russia’s digital financial asset market has experienced explosive growth in 2024, reaching a total volume of 684 billion rubles—more than seven times its 2023 size, according to a new report by Sber.

While the market’s expansion signals increasing adoption, inefficiencies in infrastructure and a lack of interconnectivity between trading platforms continue to pose challenges.

Russia’s Digital Asset Market Surges

DFAs, which serve as tokenized versions of real-world assets, are issued through platforms approved by the Bank of Russia and operate under a tightly regulated framework.

Unlike cryptocurrencies, these digital assets are tied to tangible securities, debt instruments, or commodities and function on private blockchains with strict oversight.

Russia’s DFA market has gained traction since its inception in 2022, when Lighthouse executed the first tokenization of commercial debt, later acquired by VTB Factoring.

By the end of 2023, total issuances stood below 100 billion rubles across approximately 300 offerings.

That number skyrocketed in 2024, with issuances exceeding 550 billion rubles and the total count reaching 1,200.

Liquidity has also improved. The volume of secondary market transactions jumped from 0.24 billion rubles in the second quarter of 2024 to 29.1 billion rubles in the third quarter.

Despite this growth, the market remains concentrated. Two major banks—Alfa-Bank and VTB—account for 57% of total issuances, while just three platforms dominate 85% of trading volume: Alfa-Bank’s A-Token (60%), Masterchain (20%), and Promsvyazbank’s Tokeon (5%).

Debt Instruments Dominate, but Interest in Hybrid Assets Grows

A Growing Investor Base, but Structural Challenges Remain

Investor interest in DFAs is rising, albeit from a low base.

A survey of 2,300 respondents across 164 Russian cities found that 8.3% were willing to invest in digital assets in 2024, up from 7% the previous year.

The average investment amount also grew, rising from 10,000 rubles in 2023 to 15,000 rubles in 2024.

Yet, despite institutional involvement and retail interest, the market lacks a unified infrastructure.

While the Moscow Exchange and St. Petersburg Exchange facilitate trading, information systems remain disconnected.

In 2024, Bank of Russia Governor Elvira Nabiullina emphasized the need for a unified system to facilitate digital asset purchases, but authorities have yet to implement a concrete solution.

For now, Russia’s digital asset market continues to expand at a breakneck pace—but its long-term sustainability may depend on resolving its lingering inefficiencies.