Russian mining giant Nornickel has begun testing its tokenized metal trading platform.
The world's largest palladium and refined nickel producer, Norilsk Nickel, has begun testing its digital metal token trading platform, where tokens backed by metal commodities will serve as a medium of exchange, potentially accounting for over one-fifth of its total sales in the future.
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Specifically, the trading platform aims to enable customers to purchase digital tokens backed by metals and use them as a medium of exchange for physical metals. Its advantages lie in simplifying transactions and reducing costs, making it easier for customers to sell excess trading volume to other companies rather than engaging in complex negotiations with suppliers.
In addition, the company has partnered with many large industrial groups. On December 5th, Nornickel began collaborating with the world's largest metal trader Trafigura Group, metal logistics company Traxys SA, and materials technology group Umicore SA to test its digital metal token platform.
Grand Plan
Nornickel CEO Vladimir Potanin commented on the launch of the trading platform, expressing the hope that Nornickel will become the first major mining company to offer digital metal sales, thereby simplifying transactions. He further stated:
The company aims to transform its existing business into a more modern form, with the share of metal transactions using tokens expected to exceed 20% of the overall business volume in the coming years.
According to a report, the deployment of Nornickel's digital platform has proceeded as planned. The company's vice president had previously stated that the product is expected to be launched by the end of this year, with token trading commencing.
In fact, the company announced its cryptocurrency plans a year ago, but due to the absence of regulations on digital financial assets in Russia, the platform may first be launched in countries such as the US, UAE, Switzerland, or Singapore. CEO Potanin remarked:
Russian enterprises and the central bank have reached a consensus on the legislative draft, hoping that it will be passed soon. Accelerating the passage of this bill will create a certain advantage for Russia, positioning it as a leader in the cryptocurrency field.
Further Reading
- World Trade Organization: A Bright Future for Blockchain
- Bloomberg: Decrease in Cryptocurrency Funds, Retail Investors Driving the Market
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