Keywords in this story
Atomyze, Crypto, Cryptocurrencies, Cryptocurrency, DFA, DFA, Digital Assets, Digital Financial Assets, Digital Rights, Digital Tokens, Investment, Issuance, Palladium, Platinum, Rosbank, Russia, Russian, Tokens
Transactions with 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 high-tech applications, is not a publicly available asset in the Russian Federation.
The Russian unit of Atomyze, a platform specializing in commodity tokenization, and Rosbank are starting transactions with digital financial assets (DFAs) based on precious metals. The first is the issuance of a token for palladium, whose holders will be entitled to a monetary claim equivalent to the market value of the metal, Atomyze announced in a press release.
Palladium is not a public asset in the Russian market, business news agency Prime noted, reporting on the deal. At the same time, it is considered a promising investment. Palladium is used as a substitute for platinum in jewelry, and global demand for platinoids is increasing. It is also an industrial material involved in high-tech manufacturing.
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 businesses and private investors, the report says.
Digital financial assets are the only legal term that can currently be applied to cryptocurrencies in Russia, until a dedicated law “On Digital Currency” is passed, possibly this fall. However, unlike decentralized coins, DFA primarily refers to digital assets that have entities responsible for their issuance and circulation that guarantee the rights provided by the asset. In the “Digital Financial Assets” law, various tokens are actually defined as “digital rights”.
Billionaire Vladimir Potanin, one of the people behind Atomyze, said issuing digital rights to invest in commodities such as metals is a new precedent in Russia. He went even further by stating that this is the beginning of a new era for the Russian economy, “the era of tokenization”. Potanin previously expressed hope that the tokens, along with the digital ruble, will replace “untrusted” crypto assets. Some believe that DFAs can also replace foreign currency deposits.
“This first step is just the beginning of a great story that will include a new vision of traditional products and the creation of fundamentally new products for issuers and investors,” added Ekaterina Frolovicheva, Managing Director of Atomyze Russia.
Russia has yet to comprehensively regulate cryptocurrencies as discussions about their future have been prolonged by the current geopolitical situation. While most government institutions oppose their use as means of payment in the country, a proposal to allow small crypto payments in international commerce despite sanctions is gaining traction. A law recently signed by President Vladimir Putin prohibits DFA payments in Russia.
Do you expect to see more precious metal-backed tokens issued in Russia? Tell us in the comments section below.
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