Russia’s Central Bank to Enable Foreign Investment in Domestic Shares via Tokenization

The Central Bank of Russia is advancing plans to leverage tokenization technology, allowing international investors to purchase shares in domestic companies. This strategic initiative aims to modernize the financial landscape by digitizing traditional securities, thereby facilitating cross-border transactions while maintaining regulatory oversight. By converting equity holdings into blockchain-based tokens, the bank seeks to streamline processes, enhance liquidity, and attract global capital to Russian markets. The move aligns with broader economic objectives to integrate with international financial systems despite existing geopolitical challenges. Industry experts note that tokenization could reduce administrative barriers, lower transaction costs, and improve transparency for foreign participants. This development follows ongoing efforts by Russian financial authorities to explore digital asset frameworks, emphasizing compliance and investor protection. If implemented, the system would represent a significant shift in how foreign entities engage with Russia’s corporate sector, potentially setting a precedent for other emerging economies. Further details on technical specifications and rollout timelines are anticipated as the central bank refines its regulatory approach.