In partnership with the national bank Rosbank, the government-supported tokenization firm Atomyze has issued its first token secured by palladium.
Atomyze Issues Russia’s First Palladium-backed Token
On July 18th, Rosbank formally said it partnered with Atomyze to launch an industrial token. Atomyze is a Russian blockchain firm.
Rosbank will act as an investor and partner in Russia’s initial digital asset transaction using palladium. Moreover, the token is the first DFA (digital financial asset) created by Atomyze.
Earlier in February, the central bank of Russia had given Atomyze a license to operate. This made it the first authorized manager of digital assets in the nation.
Interros, a Russian organization and investment firm will support Rosbank and Atomyze. Russian business mogul, Vladimir Potanin, owns Interros.
Nornickel is a Russian palladium and nickel mining and smelting company. They plan to tokenize palladium using a palladium fund domiciled in Switzerland. The CEO of Nornickel in 2019 first revealed this plan.
According to Interros, Atomyze is a crucial component of the firm’s digital ecosystem. Other ecosystem members include Rosbank, Tinkoff, a private bank, and Reksoft, a software development firm.
“The age of tokenization will start in Russia. This is a major occasion in Russia. Investments in this metal are available to Russian individuals and companies,” Potanin remarked.
Industrial Tokens To Replace Crypto
Also, Potanin voiced optimism that Atomyze-issued digital financial assets such as the palladium token will replace BTC. He said:
“Industrial tokens, unlike cryptos, are supported by tangible assets. Also, the usage of blockchain tech makes their operations transparent, practical , and dependable. Therefore, cryptocurrency cannot compete with such token. Hence, the token may force crypto outside of the digital market.”
Meanwhile, the investment product is referred to as the “palladium token” by Rosbank and Atomyze. However, it resembles a stablecoin since precious metals support it.
As per the bank’s statement, this novel product allows Rosbank to have a cash claim equal to the valuation of palladium. According to Cointelegraph, major stablecoin issuers like Paxos and Tether had previously released gold-backed stablecoins.
Recently, Russia’s President, Putin, signed a law to forbid the usage of crypto for payment. This states that users can not pay for “performed works, transferred products, and provided services” using crypto.
This regulation is a huge blow to Russians hoping to use their crypto for payment. Hence, exchange operators can reject all payments made with DFAs.
Moreover, all digital assets, including crypto, fall under DFAs. Likewise, payments using utilitarian digital rights (UDR) are also prohibited by law.