A token backed by palladium is being launched in Russia to enable transfers of digital assets. The metal, which is used for jewelry and high-tech applications, does not exist as a publicly accessible asset in the country.

In February 2022, Atomyze received its registration from the central bank as Russia's first legal digital asset manager, backed by a sanctioned Russian oligarch. In a new move, Atomyze's Russian unit and Rosbank's digital financial asset (DFA) division are trading precious metals-based digital financial assets.

Interros, an investment firm, and conglomerate founded by sanctioned oligarch Vladimir Potanin backs both Atomyze and Rosbank.

A dedicated law on digital currency is likely to be enacted in Russia soon, so digital financial assets are the only term that can be used to describe cryptocurrencies. As opposed to decentralized coins, digital financial assets are those issued by entities that guarantee the rights attached to the currency.

As one of the people behind Atomyze, Russian billionaire Vladimir Potanin said it's a new precedent for Russian investors.

He went further by adding, “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.”

Furthermore, Potanin is very confident that cryptocurrencies like Bitcoin (BTC) might soon be replaced by digital assets like the palladium token.

In light of the geopolitical situation, Russia has not yet been able to regulate cryptocurrencies effectively. A law recently signed by President Vladimir Putin bans DFA payments within Russia, but a proposal to allow small crypto payments in international trade has gained support.

Pavan A

CBW - External Analyst

INDIA