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First Blockchain-tracked Nickel and Copper ETCs on LSE Launched by Nornickel`s Fund

Denis Goncharenko

The Global Palladium Fund of Russia's Norilsk Nickel, a mining giant, has launched Blockchain-tracked securities known as Exchange Traded Commodities (ETCs) which offer investors exposure to the spot prices of nickel and copper without the burdens associated with owning them, it said.

Nornickel, the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper, announced that the Global Palladium Fund (GPF), founded by Nornickel, has launched Exchange Traded Commodities (ETC) for nickel and copper on the London Stock Exchange (LSE) giving markets unique access to low-cost base metals investment opportunities.

Norilsk Nickel became one of the first companies in the industry and in the world to launch this mechanism. The company notes the growing demand for products and is pleased with the launch of digital platforms.

“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 are 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.”

– commented Anton Berlin, Nornickel Vice President, Sales and Distribution.

Targeting family offices, wealth managers, institutional and other similar professional investors, the new physically-backed copper and nickel ETCs will track the spot price of the metals. The metal backing GPF ETCs is stored in secure warehouses in Rotterdam. It was previously reported that Interros, Nornickel's largest shareholder, has entered the consortium of investors for the Atomyze blockchain platform.

Atomyze is an international digital marketplace that provides tokenization of physical assets, goods and services. One of the first Atomyze issuers was Norilsk Nickel, which last year issued tokens for its metals on this platform. Tokens are actively traded on the London and Frankfurt stock exchanges, and they are planned to be listed on other world platforms.

The Atomyze platform’s independent branches exist in the American and Swiss jurisdictions, while the third one in Russia has a permission pending from the Central Bank of Russia. At the end of May, the Russian Union of Industrialists and Entrepreneurs asked the Central Bank to speed up the licensing of tokenization platforms in Russia.

Tokenization will allow industrial companies with ambitious environmental goals to create additional value for their ESG-compliant products. Digital assets that will be backed by ESG-compliant products have an important difference from conventional financial instruments. Given the specifications of the blockchain technology, the origin of goods and services at all stages of their production up to disposal will be transparent, news outlets reported.

Potentially, tokens for such products can become an investment tool and be in demand not only among traditional industrial clients, but also among other categories of investors focused on ESG.

Earlier, Norilsk Nickel, the world's largest producer of palladium and nickel, issued the first metal contract tokens to its main industrial partners Traxys SA and Umicore SA. Norilsk Nickel became one of the first companies in the industry and in the world to launch this mechanism.

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