Debt-Based Digital Financial Assets: Russia Redefines the Rules
Russia’s market for digital financial assets (DFAs) is entering a new phase. Lawmakers have introduced a bill that clarifies the legal status and issuance rules for debt-based DFAs, a move expected to catalyze institutional growth and investor confidence.
Defining the Framework
On October 24, Russia’s State Duma received a draft law defining the legal framework for debt-based digital financial assets (DDFAs). Under the proposal, DDFAs represent a monetary claim that includes the principal paid during initial acquisition and accrued interest.
Until now, Russian law provided no separate definition for such instruments, and related issuance and servicing costs could not be deducted from taxable income — a factor that discouraged adoption. “As a result, these assets faced discriminatory tax conditions, making their issuance unprofitable for businesses,” wrote Anatoly Aksakov, Chairman of the Duma Committee on Financial Markets and one of the bill’s co-authors.
A Catalyst for Market Growth
Russia’s DFA market has grown rapidly in recent years. From an estimated value of $723m in 2023, it expanded nearly sixfold in 2024.
By the first quarter of 2025, total circulation exceeded $3.1b, with close to a thousand issuances recorded. These digital instruments are increasingly attractive amid rising lending costs, but the absence of clear regulations has limited broader adoption. The new bill aims to remove these barriers and establish DDFAs as a legitimate financing alternative for businesses and investors alike.
Opening Capital Access for SMEs
“DFAs, due to their low issuance costs and high transaction speed, will open new funding opportunities for small and medium-sized enterprises (SMEs),” said Sergey Panfilov, Deputy Director of the Center for Business Education and Analytics at Central University.
Regional governments are also showing interest. The Republic of Chuvashia has announced plans to pilot a DFA issuance project in 2026 to raise funds for regional needs.
For investors, DDFAs offer a new asset class with potentially higher yields compared to traditional instruments, while the state gains better oversight of a fast-growing sector — improving transparency and reducing risks tied to gray-market operations.
A Global Trend with Local Momentum
On October 21, the State Duma approved legislation allowing DFA trading through financial marketplaces. Analysts expect the market to exceed $10,5b this year, placing Russia among global leaders in DFA issuance.
Experts forecast that within the next four years, DFAs could reshape global capital markets, particularly in emerging economies. A joint study by Yakov & Partners and Central University estimates that integrating DFAs into domestic and international BRICS frameworks could generate an economic impact equivalent to $50 billion. “Countries that successfully build a sustainable DFA ecosystem will unlock new sources of liquidity and strengthen their presence in global capital markets,” said Dmitry Angarov, a partner at Yakov & Partners, in comments to "Vedomosti". Russia, with its focus on developing a sovereign digital financial infrastructure, is positioning itself among those shaping the global trend.
