IPMB report: The first vertically integrated gold tokenization project

As the planetary request for golden remains beardown and the asset’s terms has reached all-time highs, investors look a hard prime betwixt assorted golden concern vehicles. Traditional methods for investing successful golden travel with a fig of drawbacks. Physical golden incurs important bargain and merchantability fees, golden futures necessitate precocious fiscal literacy, portion gold-backed cryptocurrencies often deficiency reliable reserve audits, oregon their sources of golden are opaque.

IPMB: bringing unneurotic golden and cryptocurrency

The International Precious Metals Bullion Group (IPMB) combines immense acquisition successful the golden manufacture with opportunities provided by blockchain exertion to connection a caller attack to golden investing that is reliable and cost-efficient. By controlling the important steps of the proviso chain, IPMB offers favorable pricing and transparency for investors successful its gold-backed GoldPro Token (GPRO) and GEM NFTs. 

A caller study published by Cointelegraph provides penetration into this precious metals project. It gives an overview of the challenges gold tokenization solutions face, from carnal golden issues to providing liquidity and backup guarantees for integer tokens. The study discusses an in-house solution developed by IPMB to way the golden proviso chain, its GPRO token afloat collateralized by gold, and the gold-backed GEM NFTs. The study concludes with an overview of the IPMB ecosystem and its aboriginal improvement plans.                       

Inefficiencies successful the golden market

The proviso concatenation for carnal golden relies connected aggregate intermediaries, which results successful terms premiums that are yet borne by investors. Furthermore, carnal golden investments incur premiums astatine acquisition and travel with important buy/sell spreads, arsenic good arsenic custody fees of up to 1% per year. (Figure 1).

In summation to accrued costs, analyzable golden proviso chains marque it easier to disguise the root of golden ore and fell unethical mining. For instance, Ghana, a starring golden producer, has faced disapproval for unregulated artisanal mining, which harms the situation and often infringes connected quality rights.

Streamlining the golden proviso chain

In opposition to astir existing golden tokenization solutions that trust connected third-party supplies, IPMB co-owns gold mining facilities successful Ghana and controls the full golden ore transportation process. As a result, IPMB eliminates unnecessary intermediaries and achieves transparency and sustainability for the full proviso chain.  

The forthcoming motorboat of the Goldtrace360, an in-house tracking solution designed by IPMB, volition automate the tracking process and importantly trim latency. Goldtrace360 volition utilize IoT technologies to grounds each measurement successful the golden accumulation process connected the blockchain.

Introducing gold-backed GEM NFTs

GEM NFTs are integer promissory notes IPMB offers for concern people 24-karat gold. GEM NFTs are ownership titles for golden bars connected the Polygon blockchain. They scope from 1 gram to 12,500 grams to cater to a wide scope of imaginable investors.

GEM NFTs tin beryllium obtained by staking GPRO, the autochthonal token of the IPMB ecosystem connected the Polygon blockchain. While GPRO tokens are 1:1 backed with gold, their terms remains free-floating.

To get an NFT of a circumstantial denomination with a discount, the idiosyncratic indispensable involvement a corresponding fig of GPRO tokens for a play of betwixt 3 and 12 months. Longer staking is rewarded with a higher discount. If 100 GPRO tokens are staked for 12 months, 89 GPRO volition beryllium converted into a GEM NFT and 11 GPRO volition beryllium returned to the user. A constricted fig of NFTs are allocated to staking each period (Figure 2).

If the idiosyncratic triggers GPRO to GEM NFT conversion astatine the extremity of the staking period, GPROs get burned. At the aforesaid time, the GEM NFT gets assigned a unsocial 24-karat golden coin oregon barroom and a London Bullion Market Association (LBMA) serial number, which is besides reflected successful the NFT metadata.

GEM NFTs that are astatine slightest 1 twelvemonth aged tin beryllium redeemed for carnal gold, and the redemption is escaped of complaint for NFTs of implicit 100 grams of golden successful denomination. If not redeemed, NFTs enactment escaped of insurance, custody oregon absorption fees for the archetypal 5 years pursuing the mint date.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

This nonfiction is for wide accusation purposes and is not intended to beryllium and should not beryllium taken arsenic ineligible oregon concern advice. The views, thoughts, and opinions expressed present are the author’s unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.

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