Alfa-Bank introduce its own digital financial assets platform
The Russian monetary authority earlier this week granted Alfa-bank permission to issue digital assets. Following the approval, the bank launched the 'A-Token' platform for the issuance of digital financial assets (DFAs).
After the Bank of Russia had been registered as a DFA issuer the bank was able to do so. The approval makes Alfa-Bank become the second-largest banking institution capable of minting digital coins. The state-owned Sberbank is the Russian Federation's largest bank by assets.
Alfa-Bank intends to launch its own DFAs on the new platform, with a pilot launch planned for the end of February. It is working to make its infrastructure available to other market participants. The bank hopes to collaborate with both investment firms and private investors, and A-Token will be available via its mobile app.
The platform planning to issue two types of financial instruments which includes DFAs. These are monetary claims equivalent to traditional financial instruments, and another one is entirely new investment instruments.
Others that have received licenses from the authorities also include the fintech firm Lighthouse, which works with VTB bank, and the tokenization service Atomyze, which works with Rosbank. These have already released a variety of digital assets. Sberbank is also planning to launch a defi platform.
In January 2021 the law “On Digital Financial Assets” went into force which governs their issuance in Russia. Russian authorities have also been developing a legal framework for decentralized cryptocurrencies including bitcoin.
Alfa-Bank and Sberbank have been placed under sanctions by the Treasury Department of the United States. The European Union has focused on Russian access to crypto assets.
About Alfa Bank :
Alfa-Bank is a leading Russian commercial bank that offers a variety of financial services to both retail and corporate customers. It was established in 1990 and has its headquarters in Moscow, Russia. Personal and business banking, loans, investment management, and insurance are all services provided by Alfa-Bank. The bank has a significant presence in Russia and has expanded its international operations.
In September 2022, Alfa-Bank revealed its planning to build a DFA infrastructure
CBW - External Analyst