Header

Ticker

6/recent/ticker-posts

Russian Banking Giant Sber Issues Gold-Backed Digital Assets

Russian Banking Giant Sber Issues Gold-Backed Digital Assets

In an attempt to de-dollarize investments and settle international trade, the largest bank in Russia, Sber, has managed to issue digital assets backed by gold. Sber’s blockchain platform has been used to issue the first gold-backed digital asset. However, the value of the tokenized precious metal will depend on the prevailing prices of physical gold, the bank said.


Image of 999 Pure Gold 1000 grams bars on display


Sber Bank Mints Gold-Backed Coins

Russia’s largest bank, Sber, has reported issuing gold-backed digital financial assets (DFAs) on its proprietary blockchain. The coins were minted for Solfer, a holding company specializing in the processing and trading of metals and making products from precious metals.

The Russian law "On Digital Financial Assets," which entered 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, besides Atomyze and Lighthouse.

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 elaborated in an announcement, noting that this is the first transaction of this kind on its blockchain.

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

"The deal demonstrates interest from the market and the real estate sector in a new instrument that can become a good alternative to investments within the de-dollarization of the economy," said the First Deputy Chairman of Sber’s Board, Alexander Vedyakhin.

Sber to Expand DFA Product line

Pressurized by sanctions over the war in Ukraine, Russia has been preparing to broaden its legal framework for DFAs and also to cover decentralized cryptocurrencies. While there is a consensus among regulators in Moscow against the 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 corporate clients to its blockchain platform. According to an earlier statement by Vedyakhin, the bank is planning to allow individuals to use the blockchain for digital asset transactions in the spring of 2023.

Do you think more Russian companies will start tokenizing various assets in the future? Please post your comments.

Post a Comment

0 Comments