How Mortgage Digital Assets Will Help Develop the Russian Capital Market
Russia’s digital financial asset (DFA) market is expanding rapidly, with total issuance volumes soaring to 972 billion rubles in the first nine months of 2025. A new draft law, submitted to the State Duma on December 3, aims to strengthen the legal framework for mortgage-backed DFAs by introducing stricter rules and digital tracking mechanisms.
The proposed legislation introduces a 'digital twin' system, legally binding mortgage collateral rights directly to the DFA itself. This ensures a clear, traceable link between each asset and its underlying collateral in official registries. Every DFA issuance will receive a unique identifier, improving transparency and reducing fraud risks.
Under the new rules, no DFA transactions can occur before the mortgage is officially registered in the Unified State Register of Real Estate (USRRE). This measure significantly cuts legal uncertainties for investors. The law also highlights the lower risk of mortgage-backed DFAs compared to unsecured debt, which could boost investor confidence. Market projections suggest strong growth. If mortgage claims are converted into DFAs at a nominal rate of 75%, the sector could reach 847.5 billion rubles by the end of 2028. The total DFA market is already on track to exceed 1 trillion rubles by early 2026. As of October 1, 2025, Russia’s outstanding mortgage debt stood at around 22.7 trillion rubles, providing a vast potential pool for DFA issuance. Currently, the top three issuers dominate the market, accounting for 68.4% of all DFAs in circulation. State-owned Dom.RF, which oversees housing and mortgage development, may play a role in shaping this sector, though its direct involvement in DFA issuance remains unclear.
The draft law aims to create a more secure and transparent system for mortgage-backed DFAs. With stricter registration requirements and digital tracking, the market could see further expansion in the coming years. The proposed changes are expected to attract more investors by reducing risks and improving asset traceability.
