Kinesis Money on Wednesday announced the launch of Kinesis Mint, a blockchain-based platform to generate bullion-backed digital currencies.
The platform will support two cryptos – KAU, one unit of which is backed by 1 gram of gold, and KAG, which is backed by silver – and will allow users to get the tokens by depositing fiats as well as physical bullion.
As it is backed by bullion, the value of the tokens will not be as volatile as other cryptocurrencies but will follow the likes of stablecoins.
Commenting on the development, Thomas Coughlin, CEO of the Cayman Island-registered company, said: “The global shift towards decentralized digital currency is picking up momentum and Kinesis Money is setting a precedent in the precious metals space. Amidst uncertainty and volatile currencies, the new Kinesis currencies provide the stable, trustworthy financial platform that modern consumers are looking for.”
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Kinesis Mint is developed on the top of Stellar’s blockchain and the company is confident that it will provide a very efficient infrastructure for payment services – Stellar ensures over 3000 transactions per second with a settlement time of 3-5 seconds at a flat fee of 0.45 percent.
“Ahead of the long-awaited launch of the Kinesis Exchange in just a few months’ time, the Kinesis Mint will provide an opportunity for key players in the bullion vaulting and precious metals market to bring their metal into the Kinesis ecosystem, in anticipation of earning an extra potential revenue stream on their holdings,” Coughlin added. “The Kinesis Mint is a crucial step towards the full launch of the Kinesis Monetary System including our VISA debit card and we eagerly anticipate introducing future products across additional regions.”
Metals on blockchain
Kinesis is not the first blockchain company to bring precious metal-related digital asset. Earlier this year, Russian billionaire Vladimir Potanin revealed his company’s plans to introduce a digital currency for trading Palladium.
Last year, an Australian precious metal mint publicized its plans to introduce a gold-backed cryptocurrency. The UK’s Royal Mint, however, canceled its plans to launch a gold-back cryptocurrency following the government’s decision to veto the project.