Nornickel’s largest shareholders include the Russian oligarchs, Vladimir Potanin and Roman Abramovich. Nornickel, which is quoted on the Moscow and the London Stock Exchanges and has a market capitalisation of over £32 billion, has just announced that it is launching a Digital Asset, backed by palladium.
Nornickel and the German manufacturer, BSAF, have unveiled plans to build one of the world’s biggest factories making electric car batteries (to meet the growing need for such batteries) as more and more car companies produce electric-powered vehicles. These electric car batteries will require ever-increasing amounts of palladium so, by creating a Digital Asset backed by palladium, Nornickel is, in effect, enabling smaller investors as well as institutions trade this commodity 24/7.
According to Bloomberg, Nornickel’s CEO Vladimir Potanin sees the tokenising of contracts as a way of helping to make trading more efficient for buyers, such as car manufacturers which use palladium in their catalytic converters (as well as batteries) and producers like Nornickel. So, if someone commits to buying a certain quantity of the metal and finds they don’t need it all, by tokenising the metal it might be easier to transfer that part of the contract. Currently, it is only gold and silver that are available in a digital format, but It is only logical that there will be many more commodity-backed digital assets in the next year or two.