Blockchain Hub

History

2023

4 out of 5 digital financial asset operators in Russia turned out to be unprofitable

On July 2, 2024, it became known that four out of five digital financial asset operators (CFAs) in Russia completed 2023 with losses. This information is based on an analysis of the financial statements of companies whose main activity is the issue and conduct of transactions with CFA. Read more here.

Tokens included in the group PSB received a net loss of 61.8 million rubles with a total income of just over 14 million rubles. Blockchain Hub completed 2023 with a net loss of 91.3 million rubles, and Distributed Register Systems - 36.7 million rubles.

Entering the Digital Financial Asset Market

On July 27, 2023, the MTS ecosystem announced that the Bank of Russia had included in the register of information system operators in which digital financial assets are issued, Blockchain Hub LLC, a subsidiary of MTS and the developer of its own platform CFA HUB.

Legal entities and individual entrepreneurs can become users of the platform - issuers and investors, and the role of a nominal holder for organizations with a license to carry out depository activities is also provided. The connection of individuals as investors is planned until the end of 2023. Among the available types of CFA are monetary requirements and hybrid CFAs, which simultaneously include monetary requirements and utilitarian digital rights.

The business model and technical infrastructure of CFA HUB provides for connection to the platform through APIs of various types of partners: exchange operators, brokers, financial marketplaces and other agency fintech companies. Such cooperation will attract additional liquidity to the market and allow investors to purchase and sell CFAs through their usual channels.

The first financial products available on the platform were digital bonds and various instruments for tokenizing financial obligations. One of these tools was developed jointly with the supplier blockchain financing platform (Factorin part of the MTS ecosystem), whose customers will be able to tokenize their receivables as an alternative to factoring.

The appearance of a profile operator in the MTS Group opens up additional opportunities for the use of digital financial assets both within the MTS Group and for our customers. In turn, CFA HUB will be able to quickly incorporate both existing and innovative financial products and services into the platform. The use of its own operator will allow implementing projects related to the issuance of digital rights to a number of financial assets that are interesting for distribution in such a promising digital form, "said Alexander Smirnov, Director of the Corporate Finance and Treasury Department of MTS.

We enter the CFA market with a focus on those segments in which we have good competencies and capabilities. First of all, this is the field of trade financing and automation of the relationship between buyers, suppliers and banks. We also see great potential in commercial partnership with other companies in the financial industry and offer such a scheme of information, technological and marketing interaction that allows our partners to earn money with us, "said Igor Kuzmichev, CEO of Blockchain Hub.