The world’s largest producer of palladium and premium nickel, Norilsk Nickel, continues its digital technologies strategy. Since January 18, Nornickel’s Global Palladium Fund has launched exchange-traded commodities, or ETCs, for metals on the Deutsche Börse, which are held by TokenTrust AG and also utilize its distributed ledger platform, Atomyze.
Nornickel’s Global Palladium Fund plans to launch the ETCs on the London Stock Exchange “in a few days”. A AND SO ON, an instrument that is tradable as a stock or stock, offering traders and investors exposure to an underlying commodity – in this case, metals. Nornickel’s fund will contribute palladium, platinum, gold and silver to the newly launched ETC instrument and will partner with Swiss-based TokenTrust AG on metals custody arrangements and a tokenization strategy.
TokenTrust provides the fund with a distributed ledger technology-based platform called Atomyze, on which it builds Hyperledger fabric that will be used to invariably record metal information and symbolize some of the mining group’s contractual volumes.
The ETC instruments will be offered on the LME – London Metals Exchange – spot price and will provide additional guarantees as to the origin of the underlying commodities through the use of distributed ledger technology to monitor and verify standards. The CEO of Nornickel’s Global Palladium Fund, Alexander Stoyanov, said:
“Our way of digitizing raw materials allows us to capture and track the source of the underlying metals and the way they were produced, along with ESG references. Nornickel, whose products we carry, sets a new standard for responsible mining by fully endorsing the UN2030 charter and the existing LBMA source of metal standards, giving our ETC platform a […] clear differentiator. ”
As reported, Nornickel recently joined an initiative called the Responsible Sourcing Blockchain Network, that was created to improve transparency, traceability and verification of sustainable practices in the global mineral and metals industries. The network is built on the IBM Blockchain platform, similarly powered by Hyperledger Fabric.