Alfa-Bank, a prominent Russian bank, is innovating the financial market by launching a digital token on the A-Token platform. This token offers investors access to a mix of four major Russian assets: stocks, bonds, gold and money market instruments.

The aim is to modernize the financial market in Russia and increase transparency, making it easy for investors to invest in what are considered ‘safe assets’ with a single token.

This raises the question of whether this model could be the future of financial systems.

Alfa-Bank launches ‘Evergreen Portfolio’

Alfa-Bank, in collaboration with its asset management subsidiary, Alpha Capital Asset Management Company, has achieved a first with the creation of the first digital financial asset (DFA) called “Evergreen Portfolio”. This innovative investment product is based on listed investment funds and offers customers the opportunity to benefit from high returns and steady capital growth.

This development is an important step forward in the Russian financial sector. The Московская Биржа (Moskovskaya Birzha), the Moscow stock exchange, has been considering the introduction of DFAs since mid-2023. In July 2023, the exchange announced its plans to begin issuing and trading this new asset class.

Despite the ambiguity over the exact definition of digital financial assets in Russian law, DFAs represent a unique category that bridges the gap between cryptocurrencies and traditional securities. Would you invest in this kind of thing if it came onto the market in the Netherlands?

Speculations about the digital ruble

Meanwhile, the introduction of the digital ruble, Russia’s Central Bank Digital Currency (CBDC), in August 2023 has sparked speculation that it could challenge the strength of the US dollar.

However, it remains to be seen to what extent a digital ruble could compete with the US dollar. Ultimately, the currency market is one based on trust and no Western country will choose to park its capital in the Russian ruble.

Certainly not right now. In that respect, it seems very unlikely that the Russian ruble can come anywhere close to the US dollar.

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