Russia’s largest neo-bank, T-Bank, is set to enter blockchain by launching tokenized investment products. The new digital financial assets (DFAs) will be available to retail investors in early 2025. The bank aims to partner with Moscow-based blockchain firm Atomyze to develop and launch these offerings. Therefore, it will become the first in Switzerland and the banks to enter the fast-growing digital asset business.
T-Bank Expands Services with Blockchain DFAs
T-Bank aims to broaden its service mix by offering blockchain-based investment products, such as tokenized financial instruments. These offerings will use blockchain technology and automated smart contracts to slash operational costs and develop new products. The bank expects these products to generate high returns, including up to 27.5% per year on certain assets.
The Russian Central Bank cleared the Bank to start issuing DFAs in March 2024, having previously granted T-Bank permission to issue them. Like other Russian banks, including Sberbank and Alfa-Bank, the bank has been entering the DFA space. The bank’s move is one of several efforts by Russia’s financial institutions to modernize and expand their digital offerings.
Premium customers can trade DFAs by the end of 2024, but they won’t be fully rolled out until early 2025. Norilsk Nickel, a large Russian mining company, is backing the Atomyze platform, where T-Bank’s new digital asset offerings will be available.
Blockchain Infrastructure Expands Market for Digital Assets
A variety of assets will be tokenized and made into investment products by the bank. Loans include a smart factoring portfolio, bonds with floating interest rates, etc. The bank will further create ‘art tokens’ based on digital rights to income that the sale of contemporary objects of art brings in. The scholarship token is another product that will fund scholarships for top university students.
Atomyze’s blockchain infrastructure will support the bank’s new DFA range. The Atomyze platform provides a safe and regulated environment for issuing and trading tokenized assets. These products differ from public blockchain assets such as Bitcoin or Ethereum because they run on private blockchains governed by the Russian Central Bank.
T-Bank said the new products will give investors access to a secondary market and, thus, liquidity. The bank hopes to woo many investors, targeting ‘hundreds of thousands’ of participants by mid-2025. “Due to the existing facts,” Atomyze’s CEO Alexey Ilyasov said,
“we are actively working on increasing the market size in months ahead.”
T-Bank Partners with Atomyze to Navigate Digital Assets
T-Bank’s decision to enter the blockchain space is an attempt to stay current in what is becoming an atypically digital financial environment. This will position T-Bank as a digital bank first, with its blockchain token products in a good position to continue enhancing its ecosystem amid other banks in Russia racing to develop their DFAs. The bank’s advantage in its efforts to introduce new financial products or attract investment is its 43 million customer base.
The bank will also use its partnership with Atomyze to navigate the complexity of the digital asset market. T-Bank hopes Atomyze’s expertise and infrastructure around blockchain technology will serve the bank’s projects based on blockchain technology. Russia’s banks’ efforts to leverage blockchain technology for financial services align with a wider trend.
Conclusion
The upcoming launch of blockchain token investment products by T-Bank in Russia means a serious move toward digital financial assets. The bank is set to launch innovative tokenized products with permission from the Russian Central Bank, aiming to redraw the investment map. The bank’s success depends on market demand and regulatory developments in the digital asset sector as it moves forward with its plans.
FAQs
What is T-Bank’s new blockchain initiative?
The bank plans to launch tokenized investment products powered by blockchain technology in early 2025.
Who is T-Bank partnering with for this project?
T-Bank is partnering with the Moscow-based blockchain firm Atomyze to develop and launch its digital financial assets (DFAs).
When will T-Bank’s blockchain investment products be available to the public?
Retail investors can access the new DFAs starting in early 2025.