Nornickel Launches Two Blockchain-Based Exchange Traded Commodities

Nornickel, a Russian major metal producer and the world’s largest palladium producer, has announced it started to offer Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term-based exchange-traded commodities (ETCs). These assets will be based on their metals, nickel and copper, and are set to launch on the London Stock Exchange (LSE) and Borsa Italiana.

According to the announcement, the ETCs will be priced on annual expense ratios, with 0.85% for the Copper ETC, while nickel ETC will have 0.75%. Both were launched in the context of the Global Palladium Fund (GPF) founded by the metal produced. GPF is the ETC issuer to use blockchain technology that records bar information into the Distributed Ledger Technology (DLT) Distributed Ledger Technology (DLT) A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to Read this Term). That said, the fund will rely on IBM’s Hyperledger Blockchain in the custody chain of the metal.

“We are excited to announce the launch of the GPF’s new ETCs, the first physically-backed nickel and copper exchange-traded products to see the light of day. The new digital instruments is a great opportunity for investors to benefit from the rising demand for the base metals as the world is setting on the path towards a greener future,” Anton Berlin, Nornickel’s Vice President of Sales and Distribution, said about the launch.

Nornickel Blockchain Plans

In the same line, Alexander Stoyanov, Chief Executive Officer of the Global Palladium Fund, believes that the offering of the new physical copper and nickel ETCs will be beneficial because of the low costs it carries, as well as the transparency offered through the usage of the blockchain technology.

In December 2020, Nornickel announced its first plans to issue blockchain-powered tokens to its industrial partners, Traxys and Umicore. “The tokens issued by the Global Palladium Fund on the Atomyze platform will allow it to deliver Nornickel’s products to customers in a more efficient and transparent way. We are confident that it will provide the industry with the necessary tools to guarantee responsible sourcing,” Berlin commented at that time.