Tradewind Markets, a blockchain-based gold trading platform leveraging IEX trading company, has developed and launched a system for stablecoin issuers to track origin. of their precious metals.
Tradewind is trying to stop counterfeit gold seals and help precious metal investors find responsibly produced metals. Designed with the Royal Canadian Mint, Tradewind Origins tracks the geography and name of the mine, as well as the criteria for producing the metal.
"If you are a miner who produces responsible metal, once the bank buys it, it loses its identity," Tradewind CEO Michael Albanese told CoinDesk. "This bank sells it to a network of wholesalers and then to a company. This miner is challenged to be able to advertise his metal. For the first time, the miner who produces responsibly will be able to tag his metal for advertising to downstream buyers. "
Tradewind's blockchain story began in 2016 with the goal of creating more transparency in the process of trading gold with technology. In March 2018, the company launched its VaultChain platform, which served as the authoritative property record for the Mint's precious metals property. In April, Albanese stepped down as global manager of collateral management at JP Morgan to lead the startup.
Gold coins are very popular in the cryptographic community, where many see bitcoin as a better version of gold. Gold undergoing a counterfeit crisis, it became necessary to determine the provenance of the blockchain and crypto-gold funds proliferated in the market.
In September, Paxos launched a cryptographic asset backed by gold. InfiniGold unveiled a digital token with gold certificates from The Perth Mint in Australia in August. Earlier this year, four Iranian banks developed a gold-backed cryptocurrency, called "Paymon," amid reports that Iran was looking at cryptocurrency to avoid sanctions.
Tradewind Origins strengthens the company's service to help other companies develop stabilized coins backed by precious metals.
The Mint, Tradewind and the minor are the only three participants with nodes on the platform and no information was recorded in the blockchain by the miner unless the Mint and Tradewind have confirmed it.
Tradewind aims to meet environmental, social and corporate governance standards that initially impacted equity and bond investments, and are now important to investors in precious metals, said Albanese.
"You have companies and jewelers who want to reduce reputational risk and their customers are interested in knowing that what they buy has been assumed in accordance with ESG principles," said Albanese. "If you're a fund manager, an asset manager, a sovereign institution or a mutual fund, you're also worried about this because you want to make sure your purchases are ESG compliant."
Golden image via Shutterstock