Sber, the biggest bank in Russia has issued the first gold-backed digital financial assets (DFAs). In light of de-dollarization, the bank views DFAs as an “excellent alternative” to traditional investments.
On December 26, Sber announced its first issuance of gold-backed DFAs. Solfer, a supplier and producer of a variety of metals, was the first investor to acquire the issued assets. Gold-backed DFAs are monetary rights whose price and volume rely on the price of gold.
According to the legal papers for the offering, the bank would offer up to 150,000 DFAs for purchase by prospective investors. The DFAs will be up for grabs until July 30, 2023. The letter notes “the considerable risks” inherent with such assets for investors, including “the possibility of illiquidity.”
According to Alexander Vedyakhin, Sber’s first deputy chairman of the Executive Board, de-dollarization due to international financial restrictions placed on Russia following its invasion of Ukraine has made DFAs a viable alternative to conventional investments.
We anticipate a substantial increase in the number of corporate customers on our platform, and we want to extend our portfolio of digital financial assets.
Current DFA laws went into effect in 2020, however, in July 2022, President Putin of Russia passed a measure into law that made it illegal to use digital financial assets as a form of payment.
VTB Factoring, a unit of another Russian state-owned bank, announced its first big transaction using digital financial assets in June. The bank’s subsidiary paid in tokens for a pool of debt created by the engineering firm Metrowagonmash on the blockchain-based platform Lighthouse. Later in July, Sber tested its first sale using DFAs by issuing three-month assets worth 1 billion roubles (about $14.5 million at press time).
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.