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Nornickel’s Crypto Tokens Will Be Launched by the End of This Year

UTC by Maria Konash · 3 min read
Nornickel’s Crypto Tokens Will Be Launched by the End of This Year
Photo: Норникель / Twitter

Norilsk Nickel’s Stablecoin backed by contracts for palladium and nickel trading, is planned for launch by the end of 2019. The pilot project will be rolled put in partnership with IBM and Hyperledger Fabric.

Norilsk Nickel’s Stablecoin is planned to be issued in autumn 2019 according to the CEO of Norilsk Nickel – Vladimir Potanin. One of the unique features of these tokens is that they are backed by hundred-million-dollar contracts for palladium and nickel trading.

Norilsk Nickel (also known as Nornickel) is the world’s leading palladium miner.

The pilot project will be launched in autumn in partnership with IBM and on the basis of an open resource, Hyperledger Fabric (created by the Linux Foundation). Only a certain number of Nornickel’s contracts will be involved in the beginning for testing purposes.

Potanin made a series of official announcements regarding the tokens, tokenization of the real products and Nornickel’s future plans on 6th of May, 2019 at the International Economic Forum in St. Petersburg, Russia.

“We created an innovational product, which makes the transition from individual blockchain to public possible,” said Potanin. He also mentioned that partnership with IBM ensures the highest level of security for all parties involved.

Innovative solutions include inability to alter or change the records, data digitalizing and automation of business logic by using smart contracts. As a result, the platform is going to be both transparent and functional.

“After successful completion of the pilot project, worth of hundreds of millions of dollars, we expect other companies to join the platform too,” noted the CEO of Nornickel. Being an individual investor, Potanin also mentioned that it would be interesting for him to invest in such a platform and he expects other investors to join as well.

In March 2019, the amount of palladium produced by Nornickel reached its historical maximum levels and that once again proved the leading position of the company in the global arena. Furthermore, these records demonstrate that Norilsk Nickel is the right company to start with tokenizing experiments with metals.

Furthermore, according to the president of the company, the trend of asset-based tokens is booming in different industries. Tokens backed by precious metals are not the exception and they might be very appealing for serious investors.

“Once digitalized, it may seem like products and services start a new product cycle in the virtual world and sometimes they may cost even more than in the real world,” highlighted Potanin.

Generally speaking, the existence of digital platforms allowing for tokenization of products and finding investors sounds like an interesting idea for the head of Nornickel. Furthermore, such platforms may provide opportunities for exchanging intellectual rights and digital solutions as well.

Considering that such platforms cannot be related to the core business field of Nornickel, the management of the company would like to make a start and then see the response of other individual investors.

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