The world’s largest producer of palladium and premium nickel, Norilsk Nickel, is advancing its digital technology strategy. As of January 18, the Nornickel Global Palladium Fund launched Exchange Traded Commodities (ETCs) for metals on the German stock exchange, which are held by TokenTrust AG and also use the Atomyze distributed ledger platform.
Nornickel’s Global Palladium Fund intends to launch the ETCs “within a few days” on the London Stock Exchange. An ETC, an instrument that can be traded like a stock, offers traders and investors exposure to an underlying commodity – in this case metals. Nornickel’s fund will bring palladium, platinum, gold and silver to the newly launched ETC instrument and will work with Swiss-based TokenTrust AG on metal custody agreements and a tokenization strategy.
TokenTrust provides the Fund with a distributed ledger technology-based platform called Atomyze, which is based on Hyperledger Fabric and is used to invariably record metal information and label a portion of the mining group’s contract volume.
The ETC instruments are offered at the LME – London Metals Exchange spot rate and offer additional guarantees of the origin of the underlying goods due to the use of distributed ledger technology to monitor and verify standards. Nornickel’s Global Palladium Fund CEO Alexander Stoyanov said:
“Our way of digitizing raw materials makes it possible to record and track the source of the underlying metals and their manufacture as well as the ESG references. Nornickel, whose products we stock, are setting a new standard for responsible mining by complying with the UN2030- Charter fully endorsed and the existing LBMA source for metal standards, giving our ETC platform a […] clear differentiator. ”
As reported, Nornickel recently joined an initiative called Responsible Sourcing Blockchain Network, which was set up to improve transparency, traceability and verification of sustainable practices in the global minerals and metals industry. The network is based on the IBM blockchain platform, which is also supported by Hyperledger Fabric.