Table of Contents
- Overview
- Born from an institutional heritage
- Fully allocated metal ownership
- Secure and fully insured vault storage
- Quality assurance framework
- Fully redeemable
1. Overview
Deposits must conform with the ABX Quality Assurance Framework (QAF), including, but not limited, to the following:
Owning physical precious metals traditionally came with a significant cost of carry. Insurance, secure transport, auditing and secure vaulting fees all erode the immense benefits of owning physical precious metals. Imagine the advantages if these costs were removed…
The Kinesis Monetary System not only achieves this circumvention of traditional fees; For the first time in history, holders of digitised physical precious metals have the opportunity to realise a yield.
Participants of the Kinesis Monetary System are rewarded through an innovative multifaceted yield structure. This structure entitles users to differing proportional shares of accumulated transaction fees depending on the role that they pay in the Kinesis Monetary System.
Remember, the Kinesis currencies are a digital representation of your physical bullion. This means that your Kinesis currencies have intrinsic value.
Couple this with the other elements of the Kinesis Monetary System, and you have currencies based on physical precious metals, with real-world application. Each Kinesis coin in circulation is backed 1:1 with investment grade, allocated physical precious metals. The fully redeemable investment-grade bullion behind your Kinesis currencies is secured to world-class standards in logistics, storage, insurance, quality control, quality assurance and institutional good practice.
2. Born from an institutional heritage
This initiative was founded by the Allocated Bullion Exchange (ABX), a leading online exchange platform for physical bullion, with deep expertise in the precious metals industry. ABX is integrating with Deutsche Borse’s clearinghouse, European Commodity Clearing (ECC) and has extensive infrastructure and exchange technology for the trade and storage of allocated physical bullion in seven locations around the world.
It is through this exclusive partnership that Kinesis is able to leverage the vast network of vaulting, logistics, liquidity and institutional-grade metals exchange. It is through ABX, a public company with an outstanding reputation in the metals space, that Kinesis will deliver an evolutionary monetary system based on physical gold and silver.
3. Fully allocated metal ownership
Each Kinesis KAU and KAG is directly allocated with the corresponding weight of physical precious metal. This allocation is always on a 1:1 ratio. Allocated legal title remains with the holder of the Kinesis currency, ensuring that proportional ownership of the allocated gold and silver always resides with the KAU and KAG holders. The bullion behind the Kinesis digital currencies will never appear on the Kinesis balance sheet, this reduces counterparty risk when choosing to hold your bullion with Kinesis.
The Kinesis currencies are the next best thing to owning gold or silver in your hand, but with the added benefits of online access, trading, real-world application, and the security of fortified vaulting.
Kinesis currencies are not a “paper metal” product, which means that your metal ownership is not dependent upon the ability of, for example, an exchange-traded fund (ETF), contract for difference (CFD), or commodity future to obtain and redeem metal for you when you want to sell it.
Your precious metals are not recorded on Kinesis or ABX balance sheets, which means that we do not have any direct claim on the metals. We simply safeguard them on your behalf.
4. Secure and fully insured vault storage
The physical precious metal, on which the Kinesis currencies (KAG and KAU) are based, are stored within fully insured, world-class vaulting facilities in Sydney, Singapore, Hong Kong, London, Zurich and New York. Furthermore, this bullion is stored under safekeeping agreements on behalf of the legal beneficial owner with the title always being maintained by the holder.
We have 9 vaults in seven locations around the world where all our bullion is held under management, these vaults are fully audited and quality assured.
5. Quality assurance framework
Under the ABX Quality Assurance Framework (QAF), semi-annual audits are performed by Inspectorate International Ltd., a Bureau Veritas company – A leading global physical commodity audit and inspection specialist.
ABX has been developed to provide the highest levels of transparency, accessibility and accountability with respect to all services associated with the provision of trading, storing and transporting bullion in connection with the Exchange.
All bullion has a verified audit trail with multi-layered third-party audit and verification in place and regularly audited and transparent holdings system.
KAU (Gold Payment Currency): 1 Fine gram gold contract and token, consisting of gold cast bars of minimum fineness 9999, and bearing a serial number and identifying stamp of a refiner as per QAF.
KAG (Silver Payment Currency): 1 Ounce silver contract and token, consisting of silver cast bars of a minimum fineness of 999, and bearing an identifying stamp of a refiner as per QAF, and may bear a serial number.
6. Fully redeemable
Kinesis currency holders are fully entitled to redeem the underlying bullion that the KAU & KAG are based on, subject to minimum withdrawal requirements.
Kinesis currencies are allocated 1:1 with investment grade, allocated physical precious metal. This is confirmed semi-annually via independent professional audit.
We provide redemption of the underlying bullion using logistic partners Loomis, Brinks and Malca-Amit.
Redeeming bullion simultaneously destroys the digital representation of the bullion and removes the respective currency from circulation.
See also https://kinesis.money/resources/Storing-Bullion-with-Kinesis.pdf
