Commodities and industrial sectors have been keen to adopt trading systems and technology using ledger systems like blockchain, which can cut costs and administration times. Some companies see the technology as a way to track materials through the supply chain, or are considering starting digital coins backed by goods.

Potanin, who owns about a third of Nornickel and is also chief executive officer, said he has floated the idea to clients and there’s demand for tokens backed by metal.

For example, if a customer finds it doesn’t need all its contracted volume, it would either have to enter potentially difficult negotiations with the supplier, or take delivery of the metal until it needs it or finds a buyer. But if the client has a digital contract denominated in tokens, it could more easily sell the unwanted volume to someone else, the billionaire said.

Read More.. Source Bloomberg

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