One of the largest banks in Russia wants to launch a unique digital financial asset!

Alfa-Bank, the largest private bank in Russia, has announced the launch of the first Digital Financial Assets (DFA) based on exchange-traded investment funds. They are called “Evergreen Portfolio”. This product aims to offer crypto investors (or non-crypto) an attractive income potential and a sustainable growth of their capital. It mitigates the effects of the volatility of the crypto and financial market.

Legislative approval comes amid US threats os #sanctions on third-country FIs that facilitate trade with Russia.#DigitalAsset https://t.co/y3anmyVs7g

— Regulation Asia (@RegulationAsia) February 29, 2024

The “Evergreen Portfolio” aims to redefine Russia’s financial and crypto landscape

We all know Russia’s growing interest in digital assets, especially cryptocurrencies. In fact, Russia had recently discussed the possible use of crypto for cross-border payments.

The “Evergreen Portfolio” could therefore materialize this project. It is the first DFA based on investment funds in Russia. It complies with the Russian legislation on Digital Financial Assets which came into force on January 1, 2021. This law recognizes DFAs as a distinct category of assets, midway between cryptocurrencies and traditional securities.

The “Evergreen Portfolio” thus enjoys a clear and favorable legal framework. This sets it apart from cryptocurrencies, which are often considered speculative and risky assets.

A few words about Russia’s DFA product

The “Evergreen Portfolio” is a DFA that gives access to four asset classes:

• stocks,
• bonds,
• gold,
• money market instruments.

It is a diversified portfolio that combines low-risk assets. The portfolio is actively managed by professionals who adjust the asset allocation based on market conditions and client objectives.

The DFA uses Alfa-Bank’s A-Token platform, which allows it to issue and trade DFAs quickly, securely, and transparently. This offers investors increased stability and reliability (unlike crypto platforms often faced with scalability, security, or governance issues).

The “Evergreen Portfolio” is thus part of the trend of digital assets in Russia, which is increasingly interested in cryptocurrency. The question remains whether it will attract investors!