Tokenized US Stocks for Russians: A Convenient Way to Bypass Sanctions or a Hidden Threat?
After the introduction of strict restrictions in 2022, classic brokerage accounts for Russians on the U.S. stock market became practically inaccessible. However, an enterprising segment of investors found an alternative path — tokenized stocks and crypto derivatives on foreign platforms. This tool allows earning income from changes in the value of shares of American giants, using cryptocurrency for settlements. How widespread this practice is, what risks it carries, and how it relates to upcoming legislative changes — we examine in detail.
Scale of the Phenomenon: From a Niche Tool to a Mass Trend
Expert opinions on the popularity of this method are divided. Millpay CEO Igor Plotnikov assesses the prevalence of tokenized stocks on platforms like Bybit, Binance, and Deribit as very high among active traders and those who have long worked with digital assets. He points to indirect signs — lively discussions in specialized communities and high traffic on exchanges. The key advantages, in his words, are obvious: the ability to trade with high leverage, 24/7 deposit and withdrawal of funds in USDT stablecoins, and no need to open an account with a foreign broker. Moreover, amid rising oil and gold prices, platforms are actively offering instruments on commodities as well.
However, Vice President of Digital Assets at MTS Fintech Alexander Nam and Director of Strategy at IC Finam Yaroslav Kabakov are much more reserved. They call trading U.S. stocks via cryptocurrency the domain of a narrow circle of experienced players and an exclusively niche practice. In their view, this is not a mass phenomenon but rather a tool for professionals.
Legal and Sanction Risks: Complete Dependence on the Platform
In assessing potential threats, experts are unanimous. Yaroslav Kabakov highlights three categories of risks:
- Legal: complete uncertainty of the legal status of operations and complex tax accounting.
- Sanction: high probability of account blocking due to Russian citizenship.
- Infrastructure: a tokenized instrument never guarantees legal rights to ownership of the underlying asset.
Igor Plotnikov adds that any tokenized stock is a derivative, completely 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. The legal status of transactions is in a gray area due to the lack of clear regulation. Director of Analytics at AML/KYT operator SHARD Fedor Ivanov emphasizes the main problem: when depositing funds into the Russian regulated circuit, the question of the legality of their origin remains open. The difficulty is not so much in explaining the origin of funds to the bank, but in ensuring that a bank working with cryptocurrency understands these explanations.
The Future: Legal Digital Financial Assets Instead of Gray Schemes
Alexander Nam predicts that regulators will bet on licensed digital instruments within the national financial system. Most likely, investors will be offered digital financial assets (DFAs) on foreign securities, tokenized RWAs, and various structural solutions. The active development of these products will eventually push out the gray segment of the market. Igor Plotnikov views regulation from a different angle: for him, it is a long-awaited clarification of the rules of the game. After the law on digital currency comes into force, citizens will be able to legally buy tokenized assets with cryptocurrency. Restrictions will only affect the use of Russian payment infrastructure. That is, buying USDT for rubles on a domestic licensed platform, transferring them abroad, and purchasing assets there is legal. However, buying them directly on a foreign exchange with rubles will be prohibited. In practice, this is already technically impossible, as foreign platforms do not accept rubles.
My analysis: While Russian investors balance between convenience and risk, the market is clearly moving toward regulated solutions. Tokenized assets are a temporary bridge, not an end goal. In the long term, the winner will be the one who can offer a legal, safe, and convenient instrument within the national legal framework.