One of the largest banks in Russia wants to launch a unique digital financial asset!

Alfa-Bank, Russia’s largest private bank, announced the launch of the first AFN (digital financial assets) based on exchange-traded investment funds. They are called “Evergreen Portfolios”. This product aims to offer crypto investors (or not) attractive income potential and sustainable growth of their capital. It mitigates the effects of crypto and financial market volatility.

The “Evergreen Portfolio” aims to redefine Russia’s financial and crypto landscape

We all know Russia’s increased interest in digital assets, especially for cryptocurrency. Recently, Russia had already discussed the possible use of crypto for cross-border payments.

The “Evergreen Portfolio” could therefore materialize this project. It’s about first AFN based on investment funds in Russia. It complies with Russian legislation on digital financial assets, which entered into force on January 1, 2021. This law recognizes AFNs as a distinct class of assetshalfway between cryptocurrencies and traditional securities.

The “Evergreen Portfolio” therefore benefits from a clear and favorable legal framework. This sets it apart from cryptocurrencies, which are often considered speculative and risky assets.

Russia’s AFN product in a nutshell

The “Evergreen Portfolio” is an AFN which provides access to four asset classes:

• the actions,
• the obligations,
• gold,
• money market instruments.

This is a diversified portfolio which combines low-risk assets. The portfolio is actively managed by professionals who adjust asset allocation based on market conditions and client objectives.

AFN uses Alfa-Bank’s A-Token platform, which allows it to issue and trade AFNs in a fast, secure and transparent manner. Enough to offer investors increased stability and reliability (unlike crypto platforms often faced with scalability, security or governance problems).

The “Evergreen Portfolio” is thus part of the trend for digital assets in Russia, which is increasingly interested in cryptocurrency. It remains to be seen whether it will attract investors!