Russian Company Issues Digital Asset in Yuan

The largest loan issued as a digital asset on the Russian market to date is denominated in yuan. Technically, there is supposedly a blockchain behind it — economically, it says a lot about the position of the yuan in Russia.

Kai
Coinmonks
Published in
3 min readDec 8, 2022

--

Photo by Social Income on Unsplash

Unfortunately, the report is quite concise, incomplete and confusing, despite various sources and good automated translation.

In Russia, fintech company Lighthouse has issued a type of debt security for 58 million yuan (just under 8 million euros) as a Digital Financial Asset (DFA). It is not only the first such asset in the Russian market to be denominated in a foreign currency, but also the largest ever.

The DFA has a maturity of 29 days and an interest rate of 4 percent. This, according to Lighthouse, makes it only half as expensive for the issuer as other short-term loans, whose rates are 9–10 percent. The short term also protects against losses from currency fluctuations, he said.

Lighthouse calls the DFA a “new opportunity for companies to obtain short-term capital in a foreign currency at a price half as expensive as current bank rates for loans in rubles.” Apparently, companies can now borrow capital in yuan via DFA…

--

--

Kai
Coinmonks

I believe that a world with more people following their dreams with inner peace would be a much better world.