Norilsk Nickel issues its own tokens to pay off debt for equipment

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The largest Russian palladium producer, Norilsk Nickel, is testing its own tokens to fulfill loan obligations to the supplier, the Sever group of companies.

Director of the Treasury Department of Norilsk NickelAlexander Gavrilov, in an interview with RBC, said that Norilsk Nickel, as a pilot project, issued digital financial assets (DFAs) for its accounts payable using the Atomize platform. The token is called New Money Market and will be listed on the market under the ticker NMM.

The token from Norilsk Nickel is digitalanalogous to bonds. Its security represents a financial obligation from the palladium producer to return the money to the NMM owner by a certain date, according to the contract.

The volumes of issued DFAs correspond tothe company's debt to the Sever group of companies, which supplies production equipment for Norilsk Nickel's activities. The tokens will be transferred to the address of the Sever group of companies and sold to Rosbank, acting as an investor.

The cost of one NMM corresponds to 9.2 million rubles. According to the agreement, Norilsk Nickel undertakes to repay the accounts payable to the supplier in 45 days. The company, co-owned by billionaire Vladimir Potanin, is considering the possibility of scaling up the production of similar DFAs in the future. The Atomize blockchain, on which New Money Market tokens were issued, belongs to Potanin. 

In February, the Atomize platform, which providesservices for issuing tokens, was the first in Russia to receive the status of operator of digital financial assets (DFAs) from the Central Bank of the Russian Federation. Immediately after the registration of Atomize, Potanin said that the state cryptocurrency and tokens would enable the Central Bank to promote new technologies without risk to the financial system. Previously, Norilsk Nickel's Global Palladium Fund placed metal-backed ETC on the Deutsche Börse stock exchange and announced its intention to list them on the London Stock Exchange.