Russian Smelting Giant Nornickel Is Testing A Trading Platform For Digital Metal Tokens

Nornickel, the Russian mining, and smelting giant has started off testing a trading platform for digital metal tokens.

On Dec. 5, Bloomberg reported that Nornickel began trialing its platform for digital metal tokens in collaboration with:

  1. Trafigura Group Ltd.– Physical commodities trading group

  2. Traxys SA– Metals finance and logistics firm

  3. Umicore SA– Materials technology and recycling group

The platform is designed to enable clients to purchase digital tokens backed by metals and then trade them for physical supplies.

Nornickel plant in Monchegorsk

Commenting on the product rollout, Nornickel CEO Vladimir Potanin said:

The company is implying packing existing business links into a new and modern form.

Nornickel intends to raise the share its metals sales conducted using tokens to 20% within the next several years.

Former Soviet Factories Opened Up For Mining

On a Nov. report it was revealed that BitRiver, the largest data center in the former Soviet Union, opened about a year ago in the Siberian city of Bratsk and most of its clients use the facility to mine Bitcoin (BTC).

The data center allows cryptocurrency miners to take advantage of cheap energy in what once used to be the world’s largest aluminum smelter.

The plant was built by the USSR in the 1960s with the still-active hydropower plant to power its operations. The data center’s location also benefits from a cold climate, allowing mining hardware to work at higher efficiency rates while cutting cooling costs.

In Oct. Russian internet ombudsman’s bitcoin mining company planned on opening a new facility and corner 20% of the international market. The Russian Mining Company (RMC) is planning to repurpose a metal factory in the country’s northern province of Karelia. The ex Rusal facility was closed due to US sanctions in 2018.

It could soon host a Bitcoin mining farm so large that it could account for one-fifth of global output.

Source: Cointelegraph | Bloomberg Image: Mining Weekly | Maxim Marmur/AFP/Getty Images | CryptoSlate

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