Crypto news

After the harsh restrictions of 2022, classic brokerage accounts for Russian investors in the U.S. stock market became virtually inaccessible. However, the market abhors a vacuum — enterprising participants have found an alternative workaround. This involves tokenized stocks and crypto derivatives on foreign platforms. These instruments allow investors to profit from price changes in shares of American giants, using cryptocurrency for settlements. But how safe is this practice, and what is its real scale?

As an analyst, I see that there is no consensus on this matter, sparking a serious debate. Some experts consider this method a mass phenomenon, while others view it as a narrow niche for professionals. Let's break down the key aspects.

Scale of the Phenomenon: Mass Trend or Niche Instrument?

Estimates of the prevalence of tokenized stocks among Russians vary. Igor Plotnikov, Executive Director of Millpay, claims that instruments on platforms like Bybit, Binance, and Deribit are highly sought after among active traders and investors already working with digital assets. He points to lively discussions in specialized communities and high traffic on exchanges as indirect but compelling evidence of their popularity. He attributes the method's appeal to the ability to use leverage, 24/7 deposits and withdrawals in USDT, and the lack of need to open an account with a foreign broker.

However, Alexander Nam, Vice President of Digital Assets at MTS Fintech, and Yaroslav Kabakov, Director of Strategy at IC Finam, offer a more restrained assessment. They call such trading the domain of a narrow circle of experienced players, i.e., a purely niche phenomenon. In their view, the mass investor is not yet ready for such complexities.

Risks: Unity in Threat Assessment

Unlike the assessment of scale, experts are nearly unanimous in describing potential threats. They highlight three key categories of risks:

• Legal Risks: Complete uncertainty regarding the legal status of operations and complex tax accounting. The investor operates in a "gray zone" without clear regulation.
• Sanction Risks: High probability of account blocking due to Russian citizenship. The investor is entirely dependent on the rules of a specific foreign platform and could lose their assets at any moment, lacking the usual protection of property rights.
• Infrastructure Issues: A tokenized instrument never guarantees legal rights to ownership of the underlying asset. It is merely a derivative, entirely dependent on the exchange that issued it. If the platform encounters problems, the trader risks being left with nothing.

Fedor Ivanov, Director of Analytics at AML/KYT operator SHARD, adds another important nuance: when returning funds to the Russian regulated framework, the issue of their legal origin becomes acute. The difficulty lies not only in explaining to the bank where the money came from, but also in ensuring that a bank working with cryptocurrency understands those explanations.

Looking Ahead: Regulation and Legal Alternatives

Regarding future changes, opinions also converge. Yaroslav Kabakov believes that Russian lawmakers will focus on licensed digital instruments within the national financial system. Alexander Nam elaborates: investors will likely be offered digital financial assets (DFAs) on foreign securities, tokenized RWAs, and various structural solutions. In their view, the active development of these instruments will eventually push out the "gray" market segment.

Igor Plotnikov views regulation from a different angle. For him, it is not about pushing players out, but about long-awaited clarification of the rules of the game. He explains that 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 will be legal. However, buying them on a foreign exchange directly with rubles will be prohibited, although technically it is already impossible.

Analyst's Conclusion

Trading U.S. tokenized stocks through crypto derivatives is a real but high-risk instrument for Russian investors. It allows bypassing sanctions barriers but makes you entirely dependent on the will of a foreign platform and grants no rights to the real asset.

My Expertise: At this stage, this method can only be considered a temporary solution for experienced traders who are fully aware of all risks. It is categorically unsuitable for the mass investor. The future undoubtedly lies with legal and protected domestic DFAs, which are already beginning to emerge. These will become the safe bridge to foreign markets for Russian citizens.