Financial authorities in Russia are drafting rules to govern the tokenization of various types of property and goods. Officials in Moscow have admitted they are acting in response to market demand and in the hope of attracting much-needed private investments.

According to the finance ministry, the respective legal framework and infrastructure should be in place within a few months. The department believes this will create new opportunities to put money into commodities that are not readily available to investors at the moment.

Russian government to attract new investments through tokenized assets

The Ministry of Finance of the Russian Federation (Minfin) is developing rules for the tokenization of different goods and property. The ultimate goal is to create digital financial assets (DFAs) based on them in order to expand possibilities for investment.

“We are now working on a concept for tokenization of various things, including goods,” Deputy Finance Minister Ivan Chebeskov announced, speaking to reporters on the sidelines of the international “Exchange commodity market” forum.

Quoted by the Russian business news agency Prime, he further explained that the process comes down to “wrapping” various types of property and goods into digital tokens, or DFAs as they are categorized in the country’s legislation.

By doing that, Russia hopes to allow interested parties to invest in certain commodities that are currently not available to investors. “Perhaps in the future, tokenization will make it possible to do this,” Chebeskov elaborated.

The new instrument may become an element of financial transactions and offer new ways of trading and investment, he added, according to a report published by Bits.media, a leading Russian outlet for crypto and blockchain-related news.

“That’s why we are developing the tool of tokenization, so that there is also an opportunity to attract investment, including private investors,” the high-ranking Minfin official emphasized, without specifying the assets he was referring to.

Chebeskov emphasized that his department is now looking into what needs to be done to finalize the legal framework and implement the necessary infrastructure. “We see demand from both banks and markets… I think we will complete this in the next few months,” he insisted.

Russia is still undecided on what to do with cryptocurrencies

Moscow has had a complicated approach regarding digital assets such as cryptocurrencies and tokens. While the finance ministry has been pushing for wider implementation, the Central Bank of Russia (CBR) has maintained a much more conservative stance. Crypto mining was legalized in Russia, but later restricted in some regions of the vast country.

Placed under sanctions over its war in Ukraine, including financial restrictions, Russia has demonstrated interest in using cryptocurrencies in foreign trade. An “experimental legal regime” (ELR) for such transactions was established with a law signed by President Vladimir Putin.

In March, Chebeskov revealed that Russia intends to employ its existing exchange infrastructure to test cryptocurrency trading. The Minfin views the Moscow Exchange (MOEX) as a key player in the trials and considers adding more participants, he said.

Earlier last month, Deputy Finance Minister Alexey Yakovlev announced that Russia may launch “organized trading” of digital currencies within the experimental legal regime. The CBR has since reiterated its opposition to allowing the free circulation of coins outside the ELR.

In the wake of Donald Trump’s executive order to establish a Strategic Bitcoin Reserve in the United States, Russia needs to consider using cryptocurrencies, urged the head of a leading business lobby group. Alexander Shokhin, president of the Russian Union of Industrialists and Entrepreneurs, also voiced support for the idea to conduct settlements with stablecoins backed by assets, including gold.

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European financial regulators are warning that rising crypto-asset valuations, driven by expectations of US deregulation under President Donald Trump, could pose a growing threat to global financial stability.

The Joint Committee of the European Supervisory Authorities (ESAs) raised the alarm in its Spring 2025 risk update, highlighting the destabilizing impact of geopolitical fragmentation, US policy uncertainty, and digital asset market volatility.

The committee includes the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA), and the European Insurance and Occupational Pensions Authority (EIOPA).

The report noted that “recent record high crypto valuations and volatility in the context of increasing interconnections to traditional financial markets” present a growing challenge to financial stability.

While it did not mention President Donald Trump by name, the ESAs explicitly tied the surge in crypto prices to political expectations.

According to the report:

“Crypto: Volatile crypto-asset valuations, driven by expectations of US deregulatory policy agenda; increasing interconnections to traditional financial markets.”

Deepening exposure to volatility

According to the ESAs, 77% of EU equity fund flows (excluding ETFs) over the past five years were directed to US equity holdings, illustrating the bloc’s heavy exposure to American markets.

Insurers and pension funds also maintain significant allocations outside the European Economic Area, with 6% to 17% of their assets concentrated in the US, depending on the sector. This rising cross-border exposure comes amid elevated market valuations and growing leverage in alternative investment funds.

The report warned that these conditions, paired with crypto speculation, could create “risks of shocks to funds with a liquidity mismatch.” The regulators emphasized the risk of disproportionate market reactions given the macro backdrop.

The report stated:

“Risk of disproportionate reactions to surprises given recent record high US stock valuations and historically low EU corporate bond spreads.”

It further suggested that volatility triggered by policy surprises could have outsized ripple effects across asset classes.

Fragmented oversight, systemic vulnerabilities

The Joint Committee warned that growing divergence between jurisdictions, particularly if major economies ease regulations while others tighten, could further erode financial coordination.

The report also spotlighted the dual threat of AI adoption and cyber risk, which are both escalating in the financial sector. The ESAs warned that the realignment of geopolitical relations “could further heighten cyber risks in the EU.”

The ESAs called on financial institutions to incorporate crypto-related risks into their scenario analysis and to stay alert to policy-driven market shifts. The report advised institutions to “be ready for risks” and emphasized the need for adequate provisioning, recovery plans, and strengthened risk frameworks.

While the EU has moved forward with its own regulatory regime for crypto through the Markets in Crypto-Assets (MiCA) regulation, officials are increasingly concerned that a deregulatory push in the US could undermine those efforts and create arbitrage opportunities that destabilize markets.

The ESAs concluded that vigilance is critical as the crypto sector grows in size and influence and warned that the market could potentially face heightened volatility if the geopolitical uncertainty persists.

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