Trust scheme for the use of digital assets in the context of financial market fragmentation

Abstract

The article deals with the functioning of international financial markets under sanctions. Opportunistic behavior on the part of international financial institutions in relation to the Russian Federation, expressed in a gross violation of obligations and blocking significant amounts of financial resources, forms an agenda related to the need to reduce the transparency of international transactions in terms of identifying their connection with the Russian Federation. One of the methods for solving the issue is the use of digital assets. The use of digital assets based on blockchain technology makes it possible to maximally anonymize the participants in a particular transaction while guaranteeing its uniqueness and execution, however, if the transaction goes beyond such technology (logistical chains associated with the supply of raw materials, equipment, etc.), then the counterparty is deanonymized outside financial circuit. Partially, that could be solved through the use of companies “gaskets” in the territory of third countries, which leads to a significant increase in the cost of logistics expenses. At the same time, “laying companies” do not provide accessing foreign financial markets and the risk avoidance for counterparties associated with accusations of doing business with companies from the sanctions list. An alternative to such companies could be digital financial assets managed by nominal owners. The paper presents methodological recommendations for the implementation of projects related to the creation of partially secured digital financial assets based on trust agreements, which will mitigate the sanctions impact on the country’s economy in the context of the fragmentation of the global financial system