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Cryptocurrency News

Russian billionaire launching a palladium-backed token

The multi billionaire in revenues Russian company, Nornickel, is on its way to launch the first ever created palladium-backed tokens. Its President and Chairman, Vladimir Potanin, told the press this week that the token will be supported by an Hyperledger Fabric, with full support from IBM.

Potanin, who is also one of the richest businessmen in Russia, affirmed that he is currently reaching several regulators around the world, including at the historical geopolitical enemy, the US.

The Russian-based metal company performs large operations across the entire continent and it is ranked amongst the top ten copper producers worldwide. In addition to this, they have earnt recognition in the nickel and palladium mining industry. When asked about the initiative of launching its own token, Potanin commented the following:

We are trying to digitize all our sales contracts because it looks more efficient, transaction costs are lower and it adds flexibility for our clients. If you don’t need a certain amount of material you can split a token in parts and sell it to other clients. And for us, nothing changes: we ship palladium and clients get as much as they need.”

The Cryptonary team believes the use case of the token may be outstanding, as Nornickel’s clients tend to order too much palladium and hence require an instrument to renegotiate their contracts.  All in all, is easier to manage if the contract is tokenised. Regarding extra procedures,  Vladimir specify that the tokens will be backed either by Nornickel’s guarantee to ship the actual tons of metal or by the best banks in Russia.

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