The market for cross-border crypto settlements in Russia is following the same thorny path as the digital financial assets (DFA) segment. This is not about technology — the infrastructure is ready. The problem lies elsewhere: the market has to be built literally from scratch, overcoming misunderstanding and inertia from potential clients.
From Scratch: From Conversation to Deal
The key challenge for participants in this process is the lack of a ready-made ecosystem. Unlike mature markets, where a product already has demand, banks and platforms here are forced to spend enormous resources on educational efforts. Clients often fail to see the value in a new tool, and the journey from first contact to an actual transaction proves prohibitively long.
As the experience of launching DFAs shows, a deep dive into business needs is unavoidable. Companies spend months explaining the mechanics, benefits, and risks before a client is ready for a pilot payment. This is a classic "cold start," where demand must not be satisfied but created.
High Entry Cost and Low Returns
The second lesson that the crypto settlement market is learning from DFAs is the early-stage economics. In the beginning, transaction volumes are minimal, while costs for marketing, training, and legal support are at their peak. The return on invested effort is extremely low, requiring strategic patience and significant investment from players.
A separate challenge is pricing. Clients accustomed to traditional bank transfers struggle to accept the cost of a new service. It is difficult for them to compare it with familiar SWIFT transfers or domestic payments, as the evaluation criteria are unclear. This adds another layer of complexity to the negotiation process.
My view: The situation is entirely natural. Any innovative financial instrument, especially under conditions of regulatory uncertainty, goes through a "valley of death" stage. Crypto settlements are no exception. However, unlike DFAs, they have a powerful driver — the business need to circumvent sanctions restrictions. It is this factor, not marketing, that will ultimately push the market to a critical mass. Patience and consistent work with clients are the only path to success here.