GMEX Group has acquired a 30% stake in USAVE, a Malta-based blockchain platform for “eco-responsible” trading within the gold supply chain, from the miner to tracking and payments.
The move comes as part of a partnership to establish the digital Monaco Gold Spot Exchange (MGX), a commodity exchange which will enable the fair and secure trading of physical and ethically-sourced gold “from around the world”, powered by the acquiring firm’s market-leading exchange and post-trade solutions technology.
That will come in the form of GMEX Fusion, a “hybrid centralised and blockchain-based” solution for trading, market surveillance, post-trade infrastructure and digital banking, enabling the exchange to support both traditional and tokenised digital assets, and run both a high-speed private blockchain with secure cold storage and public blockchain addressing provenance of gold from demand to supply.
This will link physical gold and storage, and will not operate, as some others do, by trading duplicates of international gold derivative contracts.
Following an upcoming ICO (initial coin offering) which seeks to raise $130m (£99m), with pre-sale set to go live in September, the USAVE token will be the main means of payment, with the exchange establishing “a strong physical market where physical gold is exchanged and stored in the USAVE vault or delivered to the customer’s vault of choice”.
MGX will also create digital gold assets that can be transferred between counterparties within the MGX ecosystem and facilitate the transfer of gold, as well as the financing of its production by using it as security to lend against.
“Our mission is to develop a complete and sustainable gold ecosystem and guarantee the origin of all eco-responsible gold as it moves through the entire supply chain,” commented Selim Fendi, co-founder and CEO of USAVE.
“This partnership allows us to offer an efficient and stable means of physical gold exchange within our ecosystem and use technology to combat the risk of today’s volatile cryptocurrency markets.”
Becoming a director of USAVE following the part-acquisition, GMEX chair and CEO, Hirander Misra, commented: “We are very pleased to be working with the USAVE to fully support their ICO and to expand their ecosystem to include a digital gold exchange underpinned by ethically sourced physical gold.
“[…] this project is another example of how we are committed to using the most appropriate business knowledge and technology whether traditional or digitally enabled by blockchain to bring positive change to commodities markets.”