Blockchain Startup USAVE Teams With GMEX To Build Digital Gold Exchangebr>
Trading and post-trade technology vendor GMEX has partnered with USAVE Blockchain to build a digital exchange for physical gold. As part of the agreement, GMEX has also acquired a 30 percent stake in USAVE.
Based in London, GMEX is offering consulting and technology services as well as derivatives exchanges. The group includes Forum Trading Solutions and GMEX Technologies. The group’s London Derivatives Exchange is a combination of GMEX’s exchange business and GMEX Derivatives Indexes. It was created to take advantage of market opportunities made possible by changes to international regulation in developed markets and by growth in emerging markets.
USAVE is a blockchain solution that aims to revolutionize the gold refinery industry. Powered by the ethereum blockchain, USAVE’s network tracks and records data throughout the entire process — from the miner, through the supply chain, and ultimately the end consumer.
The two companies are planning to build the digital Monaco Gold Spot Exchange (MGX), which will allow investors to trade physical eco-responsible gold fairly. GMEX will be delivering its GMEX Fusion technology suite to the new exchange as part of its Market Advancement Program. The Fusion platform combines GMEX’s traditional centralized trading systems, which are currently live in multiple exchanges and post-trade venues, with the latest blockchain technology.
“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,” said 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.”
MGX will also utilize GMEX’s ForumMatch, a multi-asset exchange trading platform that supports both traditional assets and tokenized digital assets. The technology will run a high speed private blockchain and secure cold storage linked to external wallets and a public blockchain addressing provenance of gold from demand to supply linking physical gold and storage.
To fund the development of the exchange, USAVE will be conducting an initial coin offering (ICO) to raise a hard cap of $130 million, with the pre-ICO sale set to go live on September 17. The USAVE token will be the main means of payment on the exchange. The tokens 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.
“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.” said Hirander Misra, GMEX CEO and Chairman and Director of USAVE. “As part of our Market Advancement Program, 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.”