Digital Gold Has Arrived: Blockchain Tech Allows Investors To Own Fractional Gold
(Kitco News)- The gold market has taken onegiant leap in to the futures after Tradewind Inc. officially launched anew digital gold platform Monday.
The new gold exchange has been inthe works for more than two years, with the company receiving support frommajor players in the gold industry, including Sprott Inc and Goldcorp Inc.
The firm said that its newdigital exchange is “expected to revolutionize the trading, settlement, and ownershipof physical gold.”
“The Tradewind blockchain candirectly link precious-metals producers, custodians, market makers, dealers andinvestors,” said Mike Haughton, co-founder of Tradewind. “This will unlockopportunities for market participants to conduct business more efficiently,securely, and profitably across existing business operations, and to enablefuture utility including provenance tracking and collateral management.”
According to a press release,through blockchain technology, investors will be able to buy fractionalquantities of gold through the new platform. The gold will be vaulted by theRoyal Canadian Mint. A network of authorized dealers will provide liquidity forthe new exchange.
“The Royal Canadian Mint willfacilitate the registration of investment-grade physical gold on the Tradewindplatform as VaultChain Gold by confirming that it is in possession of thephysical gold that underlies the platform,” the company said in a pressrelease. “Together with the authorized liquidity providers and dealers, theMint will recognize the Tradewind blockchain as the authoritative record oftitle for ownership. The Mint will also contractually guarantee the option forphysical delivery of the gold underlying the program to the network of authorizedliquidity providers and dealers.”
According to media reports, MattTrudeau, president and co-founder of Tradewind, said that one of the advantagesof the revolutionary technology is lower investment costs. The companyexplained that VaultChain Gold will not be subject to the ongoing managementand administrative fees associated with securities products likeexchange-traded funds.
Instead of chargingadministration fees, Tradewind will make its profits through exchange fees.
According to reports, Sprott ownsabout 20% of the new platform and plans to be a dealer on the exchange.Tradewind also received an investment from Goldcorp in 2017 when it was one ofthe finalists in the mining’s giants’ inaugural ‘#Distruptmining showcase.
By Neils ChristensenFor Kitco News
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nchristensen@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.