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.
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…
