Economics 101: Gold has long been a preferred choice for investment security. The Vancouver- based company Goldcorp is making it easier and safer to invest in gold with blockchain.
TORONTO: Goldcorp Inc has made the first ever gold deposit on blockchain using technology by Tradewind Markets. The Toronto based company deposited the value of 3,000 ounces of gold bullion, in March 2018, from its mine site in Red Lake, Ontario.
According to the companies involved in the deposit, combining blockchain and gold is “The first way for investors to directly own gold in a financial instrument with no ongoing administration and storage costs. “This milestone for the gold mining industry is also the “genesis block” (first step) in Tradewind’s, VaultChain, the company’s newly launched digitized trading platform.
Tradewind President, Matt Trudeau, has stated that the technology “will enable gold producers like Goldcorp to overcome existing limitations and move into the electronic age.”
As it stands, the current gold market takes long to settle trades, ownership records are often convoluted and there is potential for errors that require manual reconciliation. These are all areas that blockchain can improve. The company will be the first to use blockchain in the recording and managing of gold in an institution.
Goldcorp will use VaultChain to directly sell gold to dealers and banks. The “tamper-proof shared ledger” will automatically process and settle gold transactions using computer algorithms. Tradewind will physically store the gold at the Royal Canadian Mint while Vaultchain securely identifies participants, registers gold and settles transactions.
Tradewind, whose investors include Goldcorp and Sprott Inc, is one among the burgeoning developers of Gold blockchain services for trade and supply chain tracking. Another, is the recent partnership of California’s Emergent Technology Holdings with Canadian miner Yamana Gold.
“We think that can have a big impact on the institutional market for gold investment.” (Goldcorp)
Blockchain is currently used in the diamond industry to track and trace gems origins and is planned to be applied with equal utility in the cobalt market.
Peer Ledger is at the frontline of a shift to blockchain in the cobalt industry working directly with multinational stakeholders and developing unique MIMOSI technology to simplify and secure transactions in the cobalt supply chain.