In Russia, the launch of a new business format is being prepared — digital non-public joint-stock companies. In such companies, shares will be issued immediately in the form of digital financial assets (DFA), without the usual securities. The initiator of the project is the registrar "Status", one of the largest participants in the property rights accounting market.

The Bank of Russia has already approved the rules for the operation of the information system 'Status – Territory of Tokens' and included it in the register of operators that can issue CFAs. The creation of digital joint-stock companies is made possible by this decision.

What is CFA: a complete guide and answers to questions

What is CFA in simple terms

Before diving into the topic, let’s recall what CFA is. Digital financial assets are electronic rights to property that are recorded on a blockchain. The blockchain is a digital registry where all records are kept sequentially and cannot be altered retroactively without a trace.

Simply put, CFA allows the issuance of shares, bonds, or other rights in the form of digital records that exist and are accounted for in a special system, rather than on paper or in a traditional depository.

How will digital shares be issued

In digital joint-stock companies, shares are created immediately in the form of CFA. The registry of owners of such shares will be maintained by the registrar 'Status' based on its license. The accounting will take place on the blockchain, which is part of the operator's information system.

State registration of the issuance of such shares is not required. The transfer of digital shares between owners takes place online and takes minimal time compared to traditional procedures.

Why is this format needed by companies

The main advantage of digital joint-stock companies is related to the speed of operations and automation of processes. The use of blockchain simplifies the accounting of ownership rights and the conduct of corporate actions.

Companies can organize shareholder meetings faster, record decisions, and conduct other formal procedures. The digital format reduces the burden on administrative processes and makes corporate governance more convenient for issuers.

What do investors gain and what do they not gain

Experts note that the advantages of the new format are primarily aimed at companies rather than investors. The acceleration of processes and reduction of technical costs do not always directly reflect on the profitability of investments.

Control over the accounting and circulation of digital shares remains entirely with the operator of the information system. An additional factor of uncertainty remains the regulation of equity CFAs, which is still at an early stage. Amendments to the legislation on this topic are currently not being considered.

CFA in Russia

The market for digital financial assets in Russia is developing rapidly. According to analysts' estimates, the total volume of all CFA issuances may reach 1.1 trillion rubles by the end of 2025. Over the past nine months, the volume of issuances amounted to 720 billion rubles, exceeding the figures for the entire previous year.

At the same time, the market structure remains skewed towards debt instruments. About 96% of all issuances are accounted for by non-equity CFAs, which are used as a digital form of loans and bonds. Equity digital assets currently occupy a limited niche.

Also read: Sber commented on crypto regulation in the Russian Federation and announced CFA trading in the bank's app

Prospects of digital joint-stock companies

Digital joint-stock companies are perceived as an experimental format. The mechanism demonstrates the capabilities of the digital infrastructure of the stock market, but so far does not appear to be a mass tool for investors.

The development of such an approach may give an impetus to equity digital assets in the future. A more practical direction may be the tokenization of shares in limited liability companies. Here, the ownership structure is simpler and more flexible.

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