Asset backing — the physical substrate
ALKN is backed by exactly one thing: high-purity Class 1 nickel wire. This page documents what that substance is, who has verified it, how it is valued, and how holders can confirm it remains in custody.
The material
Not every form of nickel is equal. LME contracts, for instance, cover a range of Class 1 cathode specifications and do not address nickel wire drawn for EMI shielding, aerospace, or electrolysis use. ALKN's backing is specifically drawn 99.99% NP1 nickel wire — the form factor used by hydrogen electrolyser OEMs, satellite bus manufacturers, and EV battery cell producers.
Specification
| Property | Specification | Significance |
|---|---|---|
| Grade | NP1 (GOST 492) | Highest commercial purity class |
| Purity | 99.99% Ni | Eligible for Class 1 industrial use |
| Form | Drawn wire | High surface area · electrolyser ready |
| Total length | 7,026,905 m | Measured, not estimated |
| Storage | Swiss bonded vault | Duty-suspended · temperature-controlled |
Validation stack
Six independent labs and institutions have verified either the physical specification, the electrochemical performance, or both. Each performs a distinct function — no single lab signs off on the whole.
NTU Singapore
Electrochemical performance · Faradaic efficiency under hydrogen electrolyser conditions.
IIT Delhi
Materials science validation · microstructure, grain orientation, impurity profile.
IISc Bangalore
Independent composition analysis · ICP-MS and XRF cross-validation.
Lectromec
NASA-certified EMI shielding certification · aerospace-grade electromagnetic performance.
ASACERT UK
UK-based certification · ISO-aligned supply-chain integrity and traceability.
NSL Analytical US
US-based analytical laboratory · final purity certification, Class 1 eligibility.
Valuation
Aranca, an independent valuation firm, has assessed the underlying nickel inventory at USD 1.64 billion at Class 1 spot pricing with an applied NP1 purity premium. The valuation methodology is disclosed in the offering memorandum on Site 1 and is re-performed at quarterly intervals.
ALKN is offered at USD 1.00 against a NAV of USD 2.05 per interest. That 51% discount is not a sale — it reflects the 5-year vested lockup on 600M of the 800M supply, the staged sales schedule, and a liquidity discount appropriate to a private placement. As the lockup vests monthly and as staged sales crystallise value, the discount is expected to compress. See Token economics →
Proof of reserves
Two mechanisms together constitute proof of reserves for ALKN:
- Deloitte Luxembourg performs quarterly audit of the SCSp's books, including verification of the underlying asset position.
- Grant Thornton performs an independent physical-inventory attestation at the Swiss vault.
- Both attestations are published to /data/entity.json and to the Site 1 institutional portal.
Why nickel wire specifically
Three reasons, stacked:
- Demand durability. Hydrogen electrolysers, EV battery cells, and aerospace EMI shielding have structural, multi-decade demand profiles largely uncorrelated with LME cathode spot pricing.
- Form-factor premium. Drawn wire carries a 10–25% premium over cathode because of the manufacturing step. That premium is the economic reason for the LP-interest discount mechanism.
- Limited supply. Class 1 nickel capable of producing NP1-grade wire is a minority of global nickel supply. Indonesia's export controls are tightening Class 2 supply, but Class 1 supply is the bottleneck for the energy transition.
Ready to review the offering documents? The Regulation S memorandum, subscription agreement, and KYC/AML pathway live on Site 1.
Review offering documents →