Goldcorp Deposits $4M USD In Gold On Tradewind Blockchain

Announcements, Blockchain | April 2, 2018 By:

Vancouver-based gold production firm Goldcorp Inc. has announced that it has made the first gold deposit on Tradewind’s new digitized trading platform, known as VaultChain.

Goldcorp’s 3,000 ounce gold deposit, valued at US$4 million, originated from the Red Lake Gold Mines complex. The deposit forms VaultChain’s “genesis block,” or the first block on its blockchain. By using the Tradewind platform, Goldcorp will be able to sell gold directly to dealers and banks.

Tradewind’s VaultChain, which went live on March 23, uses blockchain technology as part of a system tailored to precious metals that securely identifies participants, registers gold and settles transactions.

David Garofalo, president and CEO at Goldcorp, said they believe physical gold stored on a blockchain will increase the utility of the commodity and, ultimately, drive value in the price of gold.

“We are thrilled to be an early adopter of this 21st century platform and deposit its first bar of gold,” said Garofalo. “We believe Tradewind has the potential to change the gold investment industry like the introduction of ETFs (Exchange Traded Funds) did over 10 years ago.”

Tradewind, which is backed by Sprott, Goldcorp, and IEX Group, is hoping that its new platform will address what it sees as important problems in the precious metals industry in its current form. Tradewind and Goldcorp said they will collaborate to continue building the platform and add value for producers, dealers, refineries and investors.

David Stephens, Goldcorp vice president, said that the combination of blockchain and gold is really the first way for investors to directly own gold in a financial instrument with no ongoing administration and storage costs.

“We think the platform can have a big impact on the institutional market for gold investment,” said Stephens. “There’s now a base from which gold is digitized and that creates all kinds of opportunities for increases in the usage of gold. Anything that gives gold more utility has to be beneficial for the price.”