Digital Assets Based on Gold Issued in Russia – Bitcoin News

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A blockchain platform built by Russia’s largest banking institution, Sber, has been used to issue gold-based digital assets. The value of the tokenized precious metal will depend on physical gold prices, the bank said, noting that the operation is a first.

Russia Sber Bank Mints Gold-Backed Coins

Sber, Russia’s largest bank, said it has issued gold-based digital financial assets (DFAs) on its proprietary blockchain. The coins were minted for Solfer, a holding company specializing in processing and trading metals and manufacturing products from precious metals.

The Russian Digital Financial Assets Law, which came into force in January 2021, allows companies to tokenize various assets. Sber Bank is one of three information system operators authorized by the Bank of Russia to issue DFAs, alongside Atomyze and Lighthouse. The latter made Russia’s first DFA issue in June this year.

The DFA issued for gold represents a monetary claim on the asset, Sber explained. Its price and the obligations associated with it will depend on the dynamics of gold prices, the bank said in a statement, noting that this is the first such transaction on its blockchain.

We were drawn to the new digital format for gold, and decided to try a new way to diversify the company’s balance sheet. We believe that a new format of investing in precious metals can find its niche in the market, commented Maxim Nazhmetdinov, the chief executive of Solfer.

The agreement demonstrates the interest of the market and the real sector for a new instrument that can become a good alternative to investments in the framework of the dedollarization of the economy, underlined the first vice-president of the board of directors of Sbers , Alexander Vedyakhin.

Pressured by war-related sanctions in Ukraine, Russia is preparing to expand its legal framework for DFAs to cover decentralized cryptocurrencies as well. While there is a general consensus among regulators in Moscow against free circulation of bitcoin in the country, the government is considering legalizing crypto payments in international settlements.

Sber intends to expand the DFA product line in the future to attract more enterprise customers to its blockchain platform. According to an earlier statement from Vedyakhin, the bank also plans to allow individuals to use blockchain for digital asset transactions in spring 2023.

Tags in this story Blockchain, blockchain platform, Coins, Crypto, Cryptocurrencies, Cryptocurrency, DFA, DFA, Digital Assets, digital financial assets, gold, Russia, Russian, SBER, Sber Bank, tokenization, Tokens

Do you think more Russian companies will start tokenizing various assets in the future? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: Being a writer is who I am, rather than what I do. Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons

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