Jul 20, 2022 10:40 a.m. UTC
| Updated:
Jul 20, 2022 10:40 UTC
Transactions with digital assets backed by precious metals begin in Russia with the launch of a token for metallic elements. The rare metal, which is used in jewelry and has sophisticated applications, is not a publicly available asset within the Russian Federation.
Atomyze and Rosbank issue a digital token for Palladium
The Russian unit of Atomyze, a platform that specializes in the tokenization of commodities, and Rosbank, are beginning transactions with digital financial assets (DFAs) backed by precious metals. The main one is the provision of a token for metal items, the holders of which may have rights to a financial claim such as the value of the metal, Atomyze said in the announcement.
Palladium is not a public asset in the Russian market, Prime news agency noted news about the deal. At constant time, it is considered a promising investment. The metallic element is used as a substitute for noble platinum in jewelry and hence the global demand for PGMs is increasing. It is additionally an industrial material involved in sophisticated production.
Atomyze Russia is registered with the Central Bank of Russia as an operator of a DFA platform and is authorized to provide blockchain-based monetary instruments. Tokenization will create new opportunities and provide various tools for companies and private investors, the report said.
Digital financial assets are the only legal term that can currently be applied to cryptocurrencies in Russia, until a hyped “digital currency” law is passed, likely this fall. not like suburban coins, but DFA largely refers to digital qualities that have entities to blame for their supply and circulation that secure the rights provided by the asset. in the law “on digital financial assets”, many tokens are indeed qualified as “digital rights”.
Billionaire Vladimir Potanin, one of the people behind Atomyze, said providing digital rights to invest in commodities like metals could set a new precedent in Russia. He went even further by stating that this could be the start of a whole new era for the Russian economy, “the era of tokenization”. Potanin previously expressed hope that tokens, alongside the digital ruble, could replace “untrusted” crypto assets. Some believe that DFAs can also replace foreign currency deposits.
“This opening move is just the start of a good story that will embody a whole new take on old products and thus the creation of fundamentally new products for issuers and investors,” added Ekaterina Frolovicheva, military chief at Atomyze Russia.
Russia, however, needs to comprehensively regulate cryptocurrencies as discussions about their future have been protracted by this governmental state of affairs. as most government establishments oppose their use as a payment method in the country, a proposal to allow tiny crypto payments in international commerce despite sanctions is gaining traction. A law recently signed by President Putin prohibits DFA payments in Russia.
clark
Head of Technology.