Trading US stocks through crypto derivatives: a lifeline or a minefield for Russians?
After access to U.S. stock markets through traditional brokerage accounts was virtually cut off for Russians in 2022, the most enterprising part of investors found an alternative path. This involves tokenized stocks and crypto derivatives on foreign platforms. These instruments allow earning income from changes in the value of American giants' securities, using cryptocurrency for settlements. However, there is no consensus on the scale of this phenomenon, its risks, and its compliance with upcoming legislative changes.
Scale of the Phenomenon: From Mass Trend to Narrow Niche
Experts' opinions on how widespread this practice is have diverged dramatically. Some analysts, like Igor Plotnikov, Executive Director of Millpay, assess the popularity of tokenized stocks on platforms such as Bybit, Binance, and Deribit as very high, especially among active traders and those who have long worked with digital assets. Indirect data—lively discussions in specialized communities and high traffic on exchanges—confirms that this is one of the most sought-after ways to invest in the U.S. The method's appeal is obvious: the ability to trade with high leverage, round-the-clock deposit and withdrawal of funds in USDT stablecoins, and no need to open an account with a foreign broker.
Other experts, notably Alexander Nam, Vice President of Digital Assets at MTS Fintech, and Yaroslav Kabakov, Director of Strategy at IC Finam, are much more reserved. They call trading U.S. stocks via cryptocurrency the domain of a narrow circle of experienced players, an exclusively niche practice. In their view, this instrument remains complex and poorly understood for the mass investor.
Legal and Sanction Risks: A Gray Zone Without Protection
In assessing potential threats, experts are unanimous. Yaroslav Kabakov highlights three key categories of risks:
- Legal: complete uncertainty about the legal status of transactions and complex tax accounting.
- Sanction: high likelihood of account blocking due to Russian citizenship.
- Infrastructural: a tokenized instrument never guarantees legal rights to ownership of the underlying asset.
Igor Plotnikov adds that any tokenized stock is a derivative fully dependent on the exchange that issued it. If the platform runs into problems, the trader risks being left with nothing, as they have no rights to the real securities. Fyodor Ivanov, Director of Analytics for AML/KYT at operator SHARD, emphasizes that when withdrawing funds into the Russian regulated framework, the issue of the legality of their origin becomes acute. It will be extremely difficult for a bank to explain the nature of income derived from trading on an unregulated foreign platform.
The Future: Regulation and Legal Alternatives
Experts agree that Russian lawmakers are betting on licensed digital instruments within the national financial system. Yaroslav Kabakov and Alexander Nam expect the emergence of safe domestic products, such as digital financial assets (DFAs) on foreign securities, tokenized RWAs, and various structural solutions. In their view, their active development will eventually push out the gray market segment.
Igor Plotnikov sees this not as pushing players out, but as a long-awaited clarification of the rules of the game. After the digital currency law comes into force, citizens will be able to legally buy tokenized assets with cryptocurrency, but with restrictions on using Russian payment infrastructure. That is, buying USDT for rubles on a licensed platform, transferring them abroad, and purchasing assets there is legal. However, buying them on a foreign exchange directly with rubles will be prohibited, although technically it is already impossible now.
Analyst's Conclusion from Cryptalist: Trading U.S. stocks through crypto derivatives is not a panacea, but a temporary and risky workaround. It is only suitable for professional participants who are fully aware of all risks—from sanctions to infrastructural ones. For a conservative investor, this is a minefield. The real solution will be the emergence of legal and protected Russian analogs, such as DFAs, which will sooner or later displace "gray" schemes. Until then, every step on this path must be carefully weighed.