Friday, August 12, 2022

‘Token will defeat cryptocurrency’: Russia debuts palladium-backed coin

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The Russian government-backed tokenization platform Atomyze has issued its first digital asset backed by palladium in collaboration with the native financial institution Rosbank.

Rosbank formally introduced on Monday that it grew to become the primary associate of the Russian blockchain agency Atomyze, performing as an investor in Russia’s first digital asset take care of palladium.

In keeping with the announcement, the newly issued digital asset is the primary digital monetary asset (DFA) issued via Atomyze. The platform obtained registration from the Financial institution of Russia in February 2022, changing into the nation’s first authorized digital asset supervisor.

Each Atomyze and Rosbank are backed by Interros, a Russian conglomerate and funding agency co-founded by sanctioned oligarch Vladimir Potanin. The CEO of the Russian nickel and palladium mining and smelting firm Nornickel initially introduced plans to tokenize palladium again in 2019 via a Switzerland-based palladium fund.

In keeping with an announcement by Interros, Atomyze will serve as a key factor of Interros’ digital ecosystem together with Potanin’s just lately acquired personal financial institution Tinkoff, software program engineering agency Reksoft and Rosbank.

“This can be a really vital occasion. Russian companies and people have the chance to take a position on this steel,” Potanin mentioned within the announcement. The occasion additionally marks Russia’s economic system getting into a brand new interval, the “period of tokenization,” the oligarch famous.

Associated: Financial institution of Russia opposes personal stablecoins within the nation

Potanin additionally expressed confidence that Atomize-issued digital monetary belongings just like the palladium token will ultimately displace cryptocurrencies like Bitcoin (BTC), stating:

Not like cryptocurrencies […] industrial and different tokens are backed by bodily belongings, and using blockchain expertise makes their transactions dependable, handy and clear. The token will defeat the cryptocurrency, pushing it to the sidelines of the digital economic system.

Whereas each Atomyze or Rosbank check with the brand new funding product technically because the “palladium token,” the product has traits of a stablecoin backed by treasured metals. “The revolutionary product entitles Rosbank to a money declare equal to the market worth of palladium,” the financial institution mentioned within the announcement.

As beforehand reported by Cointelegraph, main international stablecoin issuers like Tether and Paxos debuted gold-backed stablecoins a couple of years in the past.