USAVE Blockchain has announced today that it has partnered with GMEX Group, a provider of multi-asset exchange and post-trade technology. Together, the two companies plan to build the digital Monaco Gold Spot Exchange (MGX).
According to the statement, MGX will allow investors to trade physical gold fairly and on a secure exchange. To create the exchange, GMEX will provide its GMEX Fusion technology suite as part of its Market Advancement Program.
GMEX CEO becomes Director of USAVE
As part of the agreement, GMEX has acquired a 30 percent stake in USAVE. In addition, Hirander Misra, Chairman & CEO of GMEX has also become a Director of USAVE.
USAVE provides an alternative ecosystem for gold production and distribution standards. The exchange aims to be an access point for globally ethically sourced gold, in addition to the gold produced through the USAVE ecosystem.
The exchange will utilize GMEX’s ForumMatch, a multi-asset exchange trading platform that supports both traditional assets and tokenized digital assets.
To support the development of the exchange, on July 11, 2018, USAVE announced an Initial Coin Offering (ICO). Through the ICO, the company aims to raise a hard cap of $130 million. The pre-ICO sale is scheduled to go live on September 17, 2018.
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On the MGX, the USAVE token will be the main means of payment. According to the statement, the exchange will not trade duplicates of international gold derivatives contracts. Instead, it will offer a solution based on the trading of physical gold.
The physical gold will be stored in either USAVE’s vault or will be transferred to the customer’s preferred vault. Furthermore, the exchange will create digital gold assets that can be transferred between investors on the MGX.
Commenting on the partnership, Selim Fendi, Co-Founder and CEO of USAVE said: “We are delighted to partner with GMEX to create a fair and secure exchange for ethically sourced gold worldwide.
“Our mission is to develop a complete and sustainable gold ecosystem and guarantee the origin of all eco-responsible gold as it moves through the entire supply chain.
“This partnership allows us to offer an efficient and stable means of physical gold exchange within our ecosystem and use technology to combat the risk of today’s volatile cryptocurrency markets.”
GMEX’s commitment to Blockchain
GMEX is well-known for being a supporter of the UK’s blockchain economy. Earlier this year, GMEX was highlighted as one of the leaders in the implementation of blockchain technology. This announcement was in an all-party parliamentary group report on the industry.
Misra, CEO of GMEX also added: “As part of our Market Advancement Programme, this project is another example of how we are committed to using the most appropriate business knowledge and technology whether traditional or digitally enabled by blockchain to bring positive change to commodities markets.”