Potanin found new ways for the blockchain platform

2020

Potanin found new application for the blockchain platform

At the end of February, 2020 the president and the chairman of the board of Norilsk Nickel Vladimir Potanin  told about new options of use of the Atomyze blockchain platform. According to the billionaire, in addition to tokenization of metals, the solution can be used for purchase of tickets for runs of NordStar airline and ski passes (permission to use of the elevator) in Rosa Khutor ski resort in Sochi.

In a conversation with the correspondent of Bloomberg Potanin also reported that the companies delivering materials or products for Norilsk Nickel will also be able to use Atomyze to receive payment for goods and services from the company.

Potanin declared plans to sell air tickets and ski passes in Sochi for tokens

Norilsk Nickel will test originally the tokens provided with palladium, cobalt and copper. Further other metals also will be connected to the platform. At the same time the platform is forbidden to release the tokens nominated in any currencies.

According to Potanin, Atomyze can promote that other large Russian companies will submit applications for approval of similar projects to the Central Bank. The businessman noted that the Bank of Russia needed about four months to check the platform in which the head of Norilsk Nickel invested.

Our project is of great importance for economy because the it is simpler the offered new products, the quicker they are made … To some extent Russia advances many other jurisdictions in terms of digitalization — he told.

In addition to Russia, Atomyze will also be available in the USA and Switzerland, but only the companies, but not individuals will be able to use service there. In Russia the platform can be brought by the Russian Federation into full commercial operation after entry into force of the modifed law "About Digital Financial Assets".^[1]

Approval of the platform by the Bank of Russia

On February 17, 2020 it became known that the Central Bank of Russian Federation approved a blockchain platform of Norilsk Nickel. The mining and metallurgical company calls the product the Russia's first service under the hybrid rights which allows to tokenize goods and  services,  including metals which are produced by Norilsk Nickel.

The service for  release and  the circulation of digital rights which developed "Norilsk Nickel was tested in "sandbox" of the Central Bank — on the platform where financial services which  not completely "fit" into  the current regulation can be tested without risk of violation of the current legislation.  At the same time only the technology, without participation of "living" clients of service is tested.

The Central Bank of the Russian Federation approved a blockchain platform of Norilsk Nickel

After tests the committee of the Bank of Russia on  development of financial market acknowledged the possibility of its functioning after acceptance and   entry into force of the Federal  law "About Digital Financial Assets".

As notes the Central Bank, feature of the platform developed by Norilsk Nickel the possibility of release of the hybrid tokens provided with at the same time different assets is. Besides,  any organization will be able to release digital tokens on the platform. In trade tokens which can be exchanged for exchange commodities (for example, gold, palladium, oil and gas), the rights to claim following from agreements, financial instruments, the real estate, services or other assets will be used. Release the tokens provided with goods (Asset-Backed Coin, ABC-tokens) the different organizations can, and purchase them  — a wide range of investors. 

The blockchain technology will allow to simplify sales process: when using tokens it is not required to move somehow goods, and all transactions are fixed in electronic form. But all issuers and owners of tokens will be obliged to be identified on the platform as that will be demanded by the drafted legislation.

For issuers the new technology means cost reduction, a possibility of attraction of financing on  more advantageous financial conditions and  increase in liquidity of assets, and  for investors  — access to  new perspective tools for investment  — the senior vice president of Norilsk Nickel Sergey Batekhin said.[2]

2019: Beginning of cryptoplatform implementation of metals

At the beginning of December, 2019 it became known that Norilsk Nickel began trade in metals on the cryptoplatform. For this purpose one of the mining and metallurgical companies, largest in Russia, invested in a startup for digital solutions.

The major shareholder and the head of the company Vladimir Potanin told that Norilsk Nickel started trade in metals using tokens in an interview of Bloomberg. It did not begin to disclose a name of the company in which investments for this project are enclosed. However it is known that IBM took part in development of a blockchain platform, using Hyperledger Fabric technology for trade in metal tokens.

Vladimir Potanin considers cryptoplatform trade as the perspective direction for business

According to Potanin, in trade the tokens supported with metals are used. They can be exchanged for metals that should simplify sales process: when using tokens it will not be required to move somehow metal, all transactions will be traced thanks to implementation of a blockchain.

It will be possible to purchase tokens on all metals, not only on palladium. Other partners of Norilsk Nickel will be able to join the platform later. Some already showed willingness to make it: among them — the Singapore exchange Trafigura Group and also the European companies Umicore and Traxys.

We believe that this product will attract the interest of investors in metals as still to them there was no effective access — the CEO of Traxys Mark Christoff reported.

The company aims at that tokens made up to 20% of sales of metal in several years. Potanin promised to publish more detailed project information in March-April, 2020 and also to tell about a startup which created the cryptoplatform for Norilsk Nickel. The businessman only reported that the British and Russian investors invested in this company, and Potanin's investments into digital projects make about $100 million^[3]

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