Trading US stocks through crypto derivatives: a new path for Russians or a high-risk zone?
After the harsh sanctions restrictions of 2022, Russian investors' access to the U.S. stock market through traditional brokerage accounts was virtually cut off. However, the most enterprising part of the market quickly found an alternative workaround. This refers to tokenized stocks and crypto derivatives on foreign platforms. These instruments allow investors to profit from changes in the value of U.S. company securities, using cryptocurrency for settlements. Expert assessments of the scale of this phenomenon, its dangers, and its compliance with upcoming legislative changes vary.
Scale of the Phenomenon: From Mass Trend to Narrow Niche
Analysts' opinions on how widespread this practice is diverge dramatically. Igor Plotnikov, Executive Director of Millpay, assesses the popularity of tokenized stocks on platforms like Bybit, Binance, and Deribit as very high among active traders and experienced investors already working with digital assets. He points to indirect signs: heated discussions in specialized communities and high traffic on exchanges. According to him, the method's appeal stems from the ability to trade with high leverage, 24/7 deposit and withdrawal of funds in USDT, and the lack of need to open an account with a foreign broker.
On the other hand, Alexander Nam, Vice President for Digital Assets at MTS Fintech, and Yaroslav Kabakov, Director of Strategy at IC Finam, assess the prevalence of the instrument much more cautiously. They describe trading U.S. stocks via cryptocurrency as the domain of a narrow circle of experienced players, i.e., an exclusively niche practice. At the same time, all experts are unanimous in describing the potential threats.
Legal and Sanctions Risks: Complete Dependence on the Platform
In assessing the risks, analysts are in solidarity. Yaroslav Kabakov highlights three key categories: legal, sanctions, and infrastructural. The investor is completely dependent on the rules of a specific foreign platform and can face asset freezes at any moment, left without the usual protection of property rights.
Alexander Nam shares these concerns, emphasizing that any tokenized stock is a derivative that is entirely 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 actual securities. The legal status of such transactions is in a gray area due to the lack of clear regulation.
Fyodor Ivanov, Director of Analytics at AML/KYT operator SHARD, adds that the difficulties vary depending on the type of platform. On centralized exchanges, the risks are related to compliance, which has become too demanding for users with Russian passports. On decentralized platforms, the analyst sees no particular risks beyond the standard loss of funds due to high volatility. The main problem, in his opinion, is the legality of the origin of funds when returning them to the Russian regulated framework. It will be difficult for a bank to explain the origin of profits from cryptocurrency operations.
Future in Light of Regulatory Norms
Experts agree that Russian legislators are betting on licensed digital instruments within the national financial system. Operations through uncontrolled foreign crypto exchanges will not be supported. Yaroslav Kabakov believes that investors will be offered digital financial assets (DFAs) on foreign securities, tokenized RWAs, and various structural solutions. Their active development will eventually crowd out the gray market segment.
Igor Plotnikov views regulation from a different angle: for him, it is not about crowding out players, but about a 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 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: The key divergence among experts is in assessing the scale. However, they are united in describing the risks. Trading tokenized stocks through crypto derivatives is, in essence, a bet on the token issuer, not on the real company. The investor is left without rights to the underlying asset and is extremely vulnerable to sanctions and freezes. Until transparent and protected domestic DFAs emerge, this instrument will remain a high-stakes game for professionals, not a safe investment channel for the mass investor.