Yes, it is possible to create new tokens.
Radix Engine v1 allows for new tokens to be created, named, minted, burned, and transacted via the JSON-RPC Radix Node API. Users will not be able to do this via the Desktop Wallet, and so we expect this feature to be used only by developers.
These newly minted tokens can be accessed and used in exactly the same way as XRD, however, they cannot be staked or used to pay transaction fees.
Even though Radix Engine v1 does not have user-created Component or Blueprint “smart contract” functionality, tokens created on Olympia demonstrate the kind of easy re-use of common functionality, without writing or deploying new code, that Blueprints will enable for virtually any type of DeFi functionality later with Radix Engine v2 in the Babylon release.
If you have the technical skills, and would like to create a token, please visit Creating a Token by Node API within the Radix Tech Docs.