Major Producer Nornickel Issues Its First Metal Contract-Backed Digital Coins

One of the world’s biggest palladium producers, based in Russia, announced that it’s starting the first stage of issuing blockchain-powered tokens to its industrial partners Traxys and Umicore.

Palladium Producer Giant Issues Its First Blockchain-Powered Tokens

According to the announcement, Norilsk Nickel (known as Nornickel) said the issuance of the digital coins involves metal contracts, and it aims to optimize “supply chain efficiency as well as transparency.”

Led by Russian billionaire Vladimir Potanin, the mining giant also specializes in producing nickel. The company confirmed that the miner firm Traxys and materials technology company Umicore, based in Luxembourg and Belgium respectively, are the first clients to make use of its brand-new Global Palladium Fund.

Anton Berlin, vice-president of sales and distribution at Nornickel, commented on the tokenization process:

The tokens issued by the Global Palladium Fund on the Atomyze platform will allow it to deliver Nornickel’s products to customers in a more efficient and transparent way. We are confident that it will provide the industry with the necessary tools to guarantee responsible sourcing.

Potanin got the regulatory approval from Russian watchdogs in February, as the country discussed at that time the possibility of making a crypto law a reality in the nation.

Tokens Linked to Palladium, Cobalt, Among Other Metals

The mining giant pointed out that its first-stage tokens will be tied to palladium, cobalt, copper mining, and exploration. However, other metals are expected to be included in further stages.

Moreover, Bernhard Fuchs, senior vice-president of marketing services of precious metals management at Umicore, said:

We recognize the value that the Atomyze platform is delivering: efficiency, cost optimization and flexibility that tokenization brings along – it’s a leap forward towards new levels of business efficiency as well as multi-layer-documentation, and we are looking forward to set off on this innovative path.

In July, news.Bitcoin.com reported that Russian President Vladimir Putin signed into law the bill that regulates digital financial asset (DFA) transactions. It was approved by the State Duma, the lower house of the Russian parliament, on July 22 and by the Federation Council on July 24. The law will come into force on Jan. 1, 2021.