Nornickel Says Its Fund Is First ETC Issuer To Use Blockchain
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(Kitco News) – Russian mining giant Nornickel, the world’s largest producer of high-quality palladium and nickel and a major producer of platinum and copper, today announced that the Global Palladium Fund (GPF), founded by Nornickel, launched Exchange Traded Commodities (ETC) for nickel and copper on the London Stock Exchange, giving markets unique access to low-cost base metals investment opportunities.
The company said the ETCs are attractively priced with annual total expense ratios (TERs) of 0.85% for ETC on copper and 0.75% for ETC on nickel, making them makes the most profitable way for European metals investors through a publicly traded product as they seek to capitalize on the trend of energy transition.
The listings follow the launch of GPF’s low-cost, physically-backed gold, silver, platinum and palladium ETCs in early 2021. All six physically-backed metal ETCs are listed today on Borsa Italiana – the largest such list in over a decade.
Nornickel noted that GPF is the first ETC issuer to use Blockchain technology to provide investors with improved transparency and security in their metal ETCs by recording bar information in distributed ledger technology. The new ETCs for nickel and copper will follow the respective LME spot prices. Metal-backed ETC GPFs are stored in secure warehouses in Rotterdam.
To bolster the security of ETC investors, the company said GPF uses IBM’s Hyperledger Blockchain in the metal’s chain of custody. By recording information about bars and cathodes on the blockchain, it provides clear ownership and an immutable chain of custody to investors using ETC.
The Global Palladium Fund was created by Nornickel in 2016 with a triple objective, underpinning its role as a leading player in the global palladium industry. The objective of the fund is to create an international financial platform for cooperation with the main holders of existing stocks of palladium and other metals, to promote industrial and investment demand for the metal and to reduce overall volatility. of the palladium market.
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