Russian metal producer is planning to issue crypto backed by palladium

29 Mar, 2019
by David Borman
Russian metal producer is planning to issue crypto backed by palladium

It has been reported by Bloomberg that a Russian metal production company and its leader have announced plans to create a digital asset that is backed up by actual palladium. The goal is to make trade of the resource easier, and to test tokenization of commodities.

The company, MMC Norilsk Nickel PJSC, is run by Vladimir Potanin and is the world's top producer of palladium. Now, Potanin wants to try tokenizing the palladium and if it goes well, may expand to other metals. In the article, he is quoted:

"People more and more tend to use decentralized networks and platforms that don’t have a main operator... We want to be active participants of this process."

Potanin gives an example of a customer finding themself with a greater contracted supply of a given metal than it needs. If the metal were tokenized, the tokens could be traded with much greater ease, as he added, "transactions in tokens are simpler and more convenient."

The company hopes to begin issuing tokens by years end if they can get approval. However, Russia has yet to approve any crypto regulation, which currently stands in the way. Potanin is hoping regulation will come by summer.

Will this plan work out, and will there be demand for metal backed crypto tokens? Stick here with Chepicap for all updates!

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