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Digital token issued in Russia to facilitate investments in Palladium – Bitcoin News
Transactions of digital assets backed by precious metals begin in Russia with the launch of a token for palladium. The rare metal, which is used in jewelry and has some high-tech applications, is not a publicly available asset in the Russian Federation.
Atomyze and Rosbank issue Digital Token for Palladium
The Russian unit of Atomyze, a platform specializing in the tokenization of commodities, and Rosbank, is starting transactions with digital financial assets (DFA) based on precious metals. The first is the issuance of a token for palladium, the holders of which will have rights to a monetary claim equal to the market value of the metal, Atomyze announced in a press release.
Palladium is not a public asset on the Russian market, noted the Prime Business news agency, which reported on the deal. At the same time, it is seen as a promising investment. Palladium is used as a substitute for platinum in jewelery and the global demand for platinoids is increasing. It is also an industrial material involved in high-tech production.
Atomyze Russia is registered with the Central Bank of Russia as an operator of a DFA platform and authorized to offer blockchain-based financial instruments. Tokenization can create new opportunities and provide alternative tools for both companies and private investors, the report elaborates.
Digital financial assets are the only legal term that can currently apply to cryptocurrencies in Russia, until a dedicated law “On Digital Currency” is adopted, possibly this fall. Unlike decentralized coins, however, DFA mostly refers to digital assets that have entities responsible for issuance and circulation that guarantee the rights granted by the asset. In the law “On Digital Financial Assets”, various tokens are actually defined as “digital rights.”
Billionaire Vladimir Potanin, one of the people behind Atomyze, commented that the issuance of digital rights that allow investment in commodities such as metals is a new precedent in Russia. He went even further by saying that this is the start of a new era for the Russian economy, the “era of tokenization.” Potanin has previously expressed hope that tokens, along with the digital ruble, will replace “untrustworthy” cryptoassets. Some believe DFAs can also replace foreign currency deposits.
“This first step is just the beginning of a big story that will include a new vision of traditional products and the creation of fundamentally new products for issuers and investors,” added Ekaterina Frolovicheva, CEO of Atomyze Russia.
Russia has yet to fully regulate cryptocurrencies, as discussions about their future were prolonged by the current geopolitical situation. While most public institutions oppose their use as a means of payment in the country, a proposal to allow small crypto payments in international trade amid sanctions has gained support. A law recently signed by President Vladimir Putin bans DFA payments in Russia.
Do you expect to see other tokens backed by precious metals issued in Russia? Tell us in the comments section below.
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