VTB Factoring, a subsidiary of Russia’s state-owned bank VTB, announced on Wednesday that it had conducted the first cash-backed major transaction with crypto assets.
According to the bank, the transaction resembled the issuance of short-term commercial bonds. The debt pool of Metrowagonmash, an engineering company, was tokenized on Lighthouse’s platform and purchased by VTB Factoring. A total of 10,000 tokens were issued at a price of 500 roubles ($9.87).
Atomyze Russia, a blockchain platform, was allowed to exchange digital assets in February, despite its central bank advocating for a complete ban on trading cryptocurrencies, citing financial stability concerns. In addition to Lighthouse, Russia’s top lender Sberbank also holds such a license.
Opening Doors for a New Digital Commercial Finance Era
“The organization and technical support of Russia’s first transaction with the CFA is in line with the business ideology of the Lighthouse digital platform, which is to provide the most comfortable conditions for transactions between business representatives and financial providers. Our platform provides a simple process for issuing and redeeming DFAs for all participants in the transaction, guaranteeing high reliability and transparency of operations through the use of distributed ledger technology,” Denis Jordanidi, the CEO of Lighthouse, commented.
He added: “The issuance procedure takes place instantly with minimal documentary support. We are sure that the first successful experience of issuing a digital financial market will not only contribute to the emergence of a new financial instrument in Russia but will also lay the foundation for an innovative business practice for working with borrowed capital for many interested companies in Russia.”
Also, Anton Musatov, the CEO of VTB Factoring, pointed out that this first deal opened a new digital commercial finance market in Russia. “We are pleased to take a direct part in its implementation as the first investor in the CFA. The new commercial debt financing technology makes it much easier for Russian businesses to access capital to solve operational problems. In contrast to the standard factoring procedure, the client does not need to conclude a service contract for the assignment of commercial debt,” he highlighted.
