Crypto news

After the harsh sanctions restrictions of 2022, direct access for Russian investors to the U.S. stock market through classic brokerage accounts was virtually cut off. However, the most enterprising part of the market participants quickly found an alternative workaround. This refers to tokenized stocks and crypto derivatives on foreign platforms, which allow earning income from changes in the value of U.S. company shares using cryptocurrency for settlements. How widespread this practice is, what dangers it carries, and how it relates to upcoming legislative changes — we analyze in this material.

Scale of the phenomenon: from a mass trend to a niche instrument

Experts' opinions on the popularity of this method have diverged dramatically. On one hand, there are assessments that tokenized shares of giants like Tesla or Apple on platforms such as Bybit, Binance, and Deribit are in high demand among Russians. This is especially relevant against the backdrop of the current situation, where we are seeing a downturn in the crypto market alongside a strong revival in the stock market. Indirect data — lively discussions in specialized communities and high traffic on exchanges — confirm that for many, this is one of the most accessible ways to invest in the U.S.

On the other hand, there is an opinion that this is the domain of a narrow circle of experienced players, not a mass phenomenon. The instrument remains exclusively niche, accessible only to those who have been working closely with digital assets for a long time. Nevertheless, the appeal of the method is obvious: the ability to trade with high leverage, round-the-clock deposit and withdrawal of funds in USDT stablecoins, and the lack of need to open an account with a foreign broker.

Legal and sanctions risks: a gray zone with a high cost of error

In assessing potential threats, experts, on the contrary, are unanimous. The key risks fall into three categories:

• Legal uncertainty: Complete ambiguity regarding the legal status of transactions and complex tax accounting. The investor is entirely dependent on the rules of the specific foreign platform.
• Sanctions risks: High probability of account blocking due to Russian citizenship. The platform may freeze assets at any time, leaving the investor without the usual protection of property rights.
• Infrastructure problems: A tokenized instrument never guarantees legal rights to ownership of the underlying asset. Essentially, it is a derivative fully dependent on the exchange that issued it.

The nature of this financial instrument is particularly emphasized: any tokenized share is a derivative. 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 zone due to the lack of clear regulation.

Furthermore, when withdrawing funds back into the Russian financial system, a fundamental problem arises: the bank needs an explanation of the source of funds. And the difficulty is not so much in providing explanations, but in ensuring that a bank working with cryptocurrency understands and accepts those explanations.

Looking to the future: legalization and substitution

Upcoming changes in digital currency legislation will most likely not ban, but rather legalize and regulate this market. It is expected that investors will be offered safe domestic products: digital financial assets (DFAs) on foreign securities, tokenized RWAs, and various structural solutions. Their active development will eventually displace the gray segment of the market.

Key point: after the law comes into force, citizens will be able to legally purchase tokenized assets using 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, although technically this is already impossible, as foreign platforms do not accept rubles.

My analysis: Trading U.S. stocks through crypto derivatives is a high-risk, but currently the only available way for many Russians to stay in the American market. However, I would advise treating this solely as a short-term measure. The main danger is not market volatility, but complete dependence on the integrity and sanctions policy of a specific foreign platform. As soon as legal domestic DFA products appear, the gray market will begin to shrink rapidly, and investors should be prepared for this.