Kinesis has passed its first bi-annual independent metals audit.
The audit was conducted by Inspectorate International Limited, a Bureau Veritas Group Company. Together with BDO, Inspectorate is responsible for the inspection and audit services not only on the metals backing Kinesis currencies but also on all bullion stored in the ABX Vault Network.
As we pointed out here, metals audits include:
- Weight reconciliation of all bullion stored in each vault location
- Visual checks for bar number and brand purity
- Verification that the bar number records are accurate
- Weight checks on a random sample of metal bars
- Calibration status checked for scales at each vault location
- Visual inspection of coins
- Full reporting of the findings of the inspections
From Kinesis Website:
“Transparency is important to us which is why we are proud to announce the successful completion of our first bi-annual audit.
The inaugural audit of the gold and silver bullion underpinning all Kinesis digital gold and silver-backed currencies within the Kinesis system was carried out by leading global physical commodity audit and inspection specialist, Inspectorate International, on the 17th March 2020.
Upon inspecting all gold and silver bullion within the Kinesis Vaulting System, the Inspectorate International verified that every KAU and KAG within the Kinesis monetary system is backed by an exact 1:1 allocated quantity of gold and silver bullion.
The findings are as follows:
KAU: 77,644.14 (as at 03:25UTC Wed, 11 Mar 2020)
KAG: 384, 736.38 (as at 04:00UTC Wed, 11 Mar 2020)
The independent audit confirmed the following metal quantities held by Kinesis AG as at Wed, 11 Mar 2020:
Gold: 77,644.14 g
Silver: 384,736.38 oz
The independently conducted third-party audit provides assurance to all current and future Kinesis users. The audit confirms that every gram of gold and silver represented digitally as Kinesis KAU (gold) or KAG (silver) currencies, is stored securely within our vaulting network, as promised.
Legally Allocated Title
The legal title of physical gold and silver, represented by Kinesis digital gold and silver-backed currencies, always remain with the holder, minimising counterparty risk for holders of Kinesis currencies and ensuring the holder maintains legal title to the bullion.
How does an audit work?
On the 17th of March independent officers from third-party Inspectorate International entered the Kinesis vaults and physically counted the quantity of gold and silver stored; before comparing the total against the quantity stated by ABX in the inventory report from the 11th March 2020.
Additionally, auditors assessed the weight and quality of a random selection of gold and silver bars. A series of assessments were conducted to ensure the weight and fineness of the bullion were as stated, and quality of the storage was satisfactory. All aspects of the inspection were passed, without exception.
How do I know my gold is safe?
The physical bullion that Kinesis digital gold and silver currencies are based on, is stored in secure, fully insured, state-of-the-art vaulting facilities.
We use the best
Kinesis employs the top independent audit and inspection specialist, as we place our users’ trust at the very top of our priorities. That’s why it’s essential we carry out bi-annual audits through a trusted inspectorate and provide the Kinesis community with the total transparency you deserve.”
You can find the full audit report at https://kinesis.money/resources/kinesis_audit_11-03-2020.pdf