Russia’s biggest banking institution, SberThe, has used its blockchain platform to mint digital assets that are tied to the price of gold. The lender said the value of the tokenized precious metal will be affected by the physical gold market, making this a novel experiment.
Sber Bank Russia Issues Gold-Backed Coin
SberThe largest bank in Russia, has announced that it has issued digital assets (DFAs) backed by gold through its proprietary blockchain. The coins were created for SolferA holding company that specializes in the processing and trading of metals as well as the production of products made from precious metals.
The Russian law “On Digital Financial Assets” which came into effect in January 2021, allows companies to tokenize assets. Sber Bank is one of three “information system operators” authorized by the Bank of Russia to issue DFAs, alongside Atomyze and Lighthouse. The first Russian DFA broadcast took place in June 2021.
The DFA for gold is a monetary claim to the asset, Sber explained. Its value will be determined by the dynamics of gold prices, according to the bank’s announcement.
“We were drawn to the new digital format for gold and decided to explore 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 from Solfer.
“The transaction illustrates the market’s interest and the real sector in a new instrument that can become a good alternative for investments in the context of de-dollarization of the economy,” said Alexander Vedyakhin, the first vice president of the Sber Board.
Under pressure from the sanctions against Ukraine, Russia has been working to expand its legal framework to include decentralized cryptocurrencies in DFAs. There is a consensus among Moscow’s regulators that Bitcoin should not be freely circulating in the country, though the government is looking at legalizing crypto payments under international agreements.
To attract more corporate customers to its blockchain platform, Sber intends to expand its product line. According to a previous statement by Vedyakhin, the bank plans to also allow digital asset transactions to be made via blockchain in Spring 2023.
Do you think more Russian companies will start tokenizing various assets in the near future? Please leave a comment below.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is only for informational purposes. It is not an offer to buy, sell or solicitation. It does not endorse any product, company