The Richest Man In Russia Is Making His Palladium-Backed Digital Platforms

Vladimir Potanin, chief of MMC Norilsk Nickel PJSC, and also a billionaire, plans to release a number of digital trading platforms, one of them – utilizing tokens for palladium trading.

Potanin, who happens to be the CEO of the largest palladium producer worldwide, plans the release of a unique token, backed by its Switzerland-based palladium fund. The project may expand even further, including other precious metals, such as gold, silver, and platinum. „Users are more keen on using decentralized platforms for trading, excluding the role of the main operator. We are willing to have a key role“, Potanin stated during an interview.

Large industry players have been adopting cryptocurrencies and trading systems for over a year, and DLT and blockchain are the main culprits. Utilizing ledger technologies can cut down transfer costs and time for administration. Some of the DLT users are using the new technologies to have their product transparently tracked through the supply chain.

Vladimir Potanin, who holds a third of the capital of Nornickel, put the idea to the test, resulting in demand for metal-backed tokens for trading. And by using smart contracts, the negotiation times can be shortened, and contracting can be made accessible. „Standard negotiation procedures take too long and are too resource-demanding. Using digital contracts, which are backed by tokens, users can quickly buy and sell precious metals.“, Potanin stated.

Nornickel is also considering the opportunity of making a digital platform for transactions between different branches of their company network. Doing so, Potanin is doing the job for the central bank of Russia to be able to conduct tests on one company, without affecting the whole economic micro space of Nornickel

The CEO of Nornickel is also taking the crypto game a step further by conducting meetings with lawmakers and central bank officials for creating a regulatory framework. But for the plans of Potanin to work, the Russian government has to pass a law for regulating digital financial assets. The date of the next hearing is being delayed until mid-April. „The now cited situation allows digital asset platforms to be operated solely by banks and exchanges. We think other companies may as well benefit from the blockchain and DLT solutions“, Potanin added.

The richest man in Russia is also planning to develop an intellectual property (IP) digital platform, where starting businesses can buy and sell ideas, workforce, and even companies. BCG Digital Ventures will aid the venture.

But the Russian government is still having second thoughts about regulating the crypto sector, which puts Potanin at the lookout for launching the platforms in different countries, such as Malta, for example.