Tradewind expands VaultChain metals-trading blockchain platform to silver
Financial technology company Tradewind Markets has made its VaultChain metals-trading blockchain platform available for silver producers, building on its work with gold mining companies that began earlier this year.
One of the very first clients of the new service, the company says, is Japan’s Sumitomo Corporation Global (SCMI US Inc), but the team is confident there will be many more using it in days to come.
“Our customer base has expressed strong interest in a digital silver solution to complement our gold products, making it a logical next step in our development” Steve Lowe, Head of Business Development at Tradewind says. “Users can now digitally trade and custody silver alongside their gold positions, and importantly, offer another compelling investment solution to their end clients.”
There already are some examples of the use of blockchain in the mining industry, particularly in the diamond industry, which uses it to track the precious stones.
There already are some examples of the use of blockchain in the mining industry, particularly in the diamond industry, which uses it to track the precious stones. But the application of the revolutionary technology behind cryptocurrency Bitcoin among gold and silver producers is not that clear.
“Blockchain technology is perfectly suited to the precious metals market,” Fraser Buchan, Tradewind co-founder tells MINING.com. “It is a secure and durable solution for maintaining title to hard assets – no one party control access to, or tamper with, the records of ownership – and it allows the market to tap into all of the efficiencies that come along with digital trade execution and settlement,” he says.
According to the executive, the fact that VaultChain supports different use cases and business models, it provides miners with an opportunity to execute that sale with a diverse set of market participants.
“Using a blockchain allows parties to settle these transactions more securely and efficiently,” Buchan explains. This as the platform allows to run “smart contracts”, which are computer program stored in a blockchain that automatically move digital assets between accounts when conditions encoded in it are met.
Tradewind was a finalist in Goldcorp’s Disrupt Mining competition in 2017. The gold producer later became a shareholder in the company.
VaultChain Silver is backed by the Royal Canadian Mint and Tradewind plans to bring it on large organizations, such as banks, that perform physical metal trading.