Norilsk Nickel: Service for release and circulation of digital rights

2020: Piloting of service for release and circulation of digital rights

The Bank of Russia carried out piloting of the service for release and the circulation of digital rights developed by Norilsk Nickel in regulatory "sandbox" and approved it. Service represents the platform under the hybrid rights and allows to tokenize any goods and services, including metals. On February 17, 2020 Norilsk Nickel reported about it.

Based on piloting the committee of the Bank of Russia on development of financial market acknowledged the possibility of its functioning after acceptance and entry into force of the Federal law "About Digital Financial Assets".

The service approved by the Bank of Russia is a project of Norilsk Nickel on creation in Russia of an ecosystem which will allow "digitize" (to tokenize) any assets and will provide the subsequent address of the placed tokens of Asset-Backed Coin (ABC-tokens).

ABC is a token which can be provided with exchange commodities (for example, gold, palladium, gas, oil, etc.), the rights to claim following from agreements, financial instruments, the real estate, services and other assets. The different organizations can release tokens, and purchase them — a wide range of investors.

The electronic platform will act as the operator providing transfer process of rights of possession with an asset in a digital form (token) by means of modern and safe technology of the distributed register and also the market of tokens and derivative tools providing functioning.

The release on a blockchain platform of the hybrid tokens combining at once several types of digital rights is very flexible tool which will open additional possibilities of financing of business and will expand to investors access to perspective financial instruments, noted the director of the department of financial technologies of the Bank of Russia Ivan Zimin

Important line of this ecosystem — its security. All issuers and owners of tokens will be obliged to be identified on the platform. Identification will be organized taking into account requirements of both the current, and projectible legislation.

It can become the first significant project in Russia both on tokenization, and on practical industrial application of technology of the distributed registers. For issuers this technology means cost reduction, a possibility of attraction of financing on more advantageous financial conditions and increase in liquidity of assets, and for investors — access to different perspective tools for investment, commented the senior vice president of Norilsk Nickel Sergey Batekhin

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