Nornickel Subsidiary Launches Two Blockchain-Based Exchange Traded Commodities
Global Palladium Fund (GPF), the subsidiary of MMC Norilsk Nickel (Nornickel), the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper, has launched last week 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.
The annual total expense ratios for the copper and nickel ETCs are 0.85% and 0.75% respectively, making them the most cost-effective way available for European-based investors to get to the metals through an exchange-traded product as they seek to make use of the energy transition trend.
GPF is the first ETC issuer to use Blockchain technology to provide investors with enhanced transparency and security in their metal ETCs by recording bar information into distributed ledger technology. The new nickel and copper ETCs will track the respective LME cash prices. The metal backing GPF ETCs are stored in secure warehouses in Rotterdam.
To strengthen ETC investor security, GPF uses IBM’s Hyperledger Blockchain in the custody chain of the metal. By recording bar and cathode information on the blockchain, it provides clear ownership and an immutable custody chain for investors using the ETCs.
Alexander Stoyanov, Chief Executive Officer of the Global Palladium Fund, commented: “GPF is committed to democratising investment in precious and base metals. The new physical copper and nickel ETCs benefit from our low pricing, enhanced transparency and security and sustainable supply source.”
The launch follows the listings of GPF’s physically backed, low-cost gold, silver, platinum and palladium ETCs at the beginning of 2021. All six physically backed metal Exchange Traded Commodities (ETCs) have listed on June 17 on Borsa Italiana — the largest listing of its kind in over a decade.
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