Technology

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Blockchain and Gold: Investing 2.0

Kitco has partnered with technology leaders in the blockchain and commercial banking sector to bring you Kitco Gold, the world's leading gold-backed stablecoin. Kitco Gold is a joint partnership between Kitco Metals, First Digital Trust, Tradewind Markets and Stably where:

1st Digital Trust

First Digital Trust is the registered trust company and trustee of the KGLD Trust, a trust whose assets are held for the benefit of KGLD token holders. First Digital Trust is also the trust administrator responsible for providing final authorization to issue and burn KGLD on public blockchains.

Kitco sells digital titles (AUK) for allocated gold held at the DirectReserveTM Vault and transfers AUK into the KGLD Trust for KGLD buyers using the Kitco DirectReserveTM platform. Kitco also accepts KGLD as a form of payment to allow KGLD holders to redeem physical gold from Kitco’s own product inventory (1 KGLD = 1 troy ounce of 99.99% fine gold).

Stably provides technology for First Digital Trust to interact with the KGLD smart contract to mint or burn an equivalent amount of KGLD tokens on the Ethereum public blockchain upon receiving or distributing AUK from the KGLD Trust.

The Tradewind Ledger is the digital record of ownership for the gold backing the KGLD tokens, the gold itself being held at the DirectReserve vault. By powering a vault with the Tradewind Ledger, market participants are enabled to use the value of an asset for investment, collateral, and settlement, without the need to physically move gold.

Issuance & Redemption Framework

KGLD Issuance and redemption

 

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Overview of DIRECTRESERVE™

Kitco, in collaboration with Tradewind, created Kitco DirectReserve to seamlessly connect the precious metals ecosystem through a single platform. Kitco DirectReserve ties the ownership of physical assets to the digital management of these assets. Built on the foundation of electronic records of title, and architected on a private blockchain to ensure optimal protection, Kitco DirectReserve enables the market participants to use the value of an asset for investment, collateral, and settlement, regardless of where it is held in the Kitco ecosystem.

With Kitco DirectReserve™, businesses are able to:

  • Cut out unnecessary complexity, cost, and intermediation
  • Give direct control back to the beneficial owner
  • Streamline settlement procedures
  • Build more reliable records of custody