Bank of Russia Green Lights Norilsk Nickel’s Tokenization Platform

The Russian central bank has given the green light to a Norlisk Nickel (NorNickel) digital asset tokenization platform, Finance Magnates reports.  The approval is subject to the new federal law “On Digital Financial Assets” coming into force. Currently, Russian legislation requires digital platforms to be operated by banks and exchanges.

The Bank of Russia recently tested a blockchain pilot of its own using its regulatory sandbox.

“Based on the results of the piloting, the Bank of Russia proposed to include in the draft federal law ‘On Digital Financial Assets’ the provisions necessary for the introduction and development of such decisions in the emerging digital assets market,” said Ivan Zimin, Director of the Bank of Russia Financial Technologies Department.

Norilsk Nickel is the world’s largest palladium producer and a significant producer of nickel, platinum and copper.

The metals producer plans to tokenize a wide range of assets, including commodities such as gold, palladium, gas and oil. It refers to them as Asset-Backed Coins (ABC tokens). A commodities trader can buy tokens and the tokens could be converted into the physical metal or traded.

Many blockchain firms are taking advantage of the regulatory sandbox programs to make their market debut. Similar to the Russian central bank, its Singaporean counterpart is also piloting multiple blockchain projects under its sandbox.

Recently, the Monetary Authority of Singapore (MAS) approved iSTOX, a tokenized securities trading platform, issuing two licenses after completion of its sandbox program.

Propine, another blockchain firm in the same arena, joined MAS’ sandbox program last November.

Meanwhile, the Bank of Russia is also testing the prospect of issuing a stable digital currency pegged to real estate under its sandbox program along with its ongoing efforts for a central bank digital currency.

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