Issue of digital rights on blockchain platform: pilot project in regulatory sandbox
Piloting of a blockchain platform for the issue and circulation of digital rights has been successfully completed in the Bank of Russia regulatory sandbox. It allows the digitising (tokenising) of goods, services, securities and other assets.
A feature of the platform is the possibility of issuing hybrid tokens backed by different assets simultaneously. Any organisation can issue digital tokens using the platform. This allows expanding businesses’ opportunities to raise funds and provides consumers with new convenient investment tools.
‘This was one of the largest projects in the sandbox. We carefully examined the new business model and its ability to meet market needs. An important detail of the service is the use of hybrid tokens that allow fast adjustment to the needs of businesses and consumers, and provide flexible solutions for raising investment. In the follow-up to the piloting, the Bank of Russia suggested supplementing the draft federal law ‘On Digital Financial Assets’ with provisions necessary for the introduction and development of such solutions in the emerging market of digital assets that have been supported by public authorities and businesses,’ said Ivan Zimin, Director of the Bank of Russia’s Financial Technology Department.
The blockchain platform was developed by PJSC Norilsk Nickel and can be launched after the adoption and entry into force of the draft federal law ‘On Digital Financial Assets’, which was amended in the follow-up to the pilot project.
The Bank of Russia’s regulatory sandbox allows the testing of innovative technologies and services in the financial market, and if their piloting is successful, the initiation of drafting amendments to legislation aimed at lifting barriers to their introduction. Any organisation can initiate piloting a project in the sandbox by submitting an application to the Bank of Russia.