Russia’s Nornickel Starts Testing Metal Tokenization Platform

Russa’s Nornickel Starts Testing Metal Tokenization Platform

Nornickel, the Russian giant in mining and smelting, has taken yet another step towards issuing metal-backed tokens on Atomyze, a blockchain platform based in Hyperledger.

The platform is now being launched to test alongside a handful of Nornickel’s partners including commodity trading company Trafigura, metal refinery firm Umicore and supply chain consultancy Traxys, an announcement revealed on Tuesday .

Later, according to Atomyze, a wider circle of institutional players will have access to the platform for the distributed ledger technology (DLT). As Nornickel CEO Vladimir Potanin told Bloomberg Tuesday morning, it’s expected to serve the companies from Switzerland and the United States.

Users To Access Atomyze By Year-end

Users in Russia might also be able to access Atomyze by the end of the year, but only if by that time long-in – the-works regulations clarifying the status of digital assets were passed.

Palladium, cobalt, and copper mined by Nornickel will back up the first batch of tokens. Nornickel expects to tokenize up to 10 per cent of its total sales volume over the first year – a figure that may rise to 20 percent in the future, the company said.

However, a Trafigura spokesperson said the company is “in advanced discussions to participate” in Atomyze and “is looking forward to taking an active part in the testing phase of the platform.”

Atomyze was created by the Swiss entity Tokentrust, led by CEO Marco Grossi, a former Deloitte Switzerland director. The board of Tokentrust is composed of Alexander Stoyanov, managing director of the Global Palladium Fund subsidiary of Nornickel.

It is worth noting that, IBM has also been involved, acting as a leading technology partner for the project. Big Blue “participated in the development of the platform and the integration of the advanced BFT (Byzantine Fault Tolerant) consensus mechanism that allows the implementation of an open governance model system when using the Hyperledger Fabric framework,” a representative of the company said.

Separately, Russia’s central bank has finally completed the experimental test of blockchain technology. Thus, it seems that Russia has outperformed China in this regard, especially as the latter has doubled its views on the future of blockchain technology.

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