Digital Metal Exchange (DMX) is offering near-future delivery of gold at significant discounts from spot price, the company has reported.
This comes in the form of digital assets redeemable at maturity for a specified quantity of the metal.
The Melbourne-based DMX claims manufacturers can: hedge against price increases for near-future deliveries of gold; gain upside on forward prices discounted against spot; and examine provenance of the metal with Single Origin Gold certification.
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Gold from two Australian mines and one from Ecuador is available on the DMX online platform for purchase by manufacturers and investment professionals.
Each of the mines is forward-selling a quantity of the metal to be delivered at an agreed time.
The purchase is in the form of digital tokens, the price of which is determined by a proprietary DMX risk-assessment algorithm.
The forward-sale process uses blockchain-based tokens which contain the rules of trade, disposal and maturity, known as smart contracts. These define the offer and specify the details of the funding mechanism itself so mines are able to present well-documented, transparent offers.
Jeremy Samuel, CEO of Digital Metal Exchange, said: “One of our major advantages for manufacturers is that, by default, each digital asset is tied to the production of a particular mine.
“Modern customers demand sourcing transparency and clear provenance in the products they buy and use, and jewellery is no different. We are able to demonstrate precisely where the metal that will go into your pieces comes from.
“Our exchange and all of its procedures are designed with safety as a fundamental principle and the security of both the sell side and the buy side are of paramount importance to us.
“For example, none of the digital assets are held on-exchange but, rather, in a Tier 1 hardware-based data storage vault in Switzerland – the same technology as used by all Swiss banks.”
