Canamex Gold Corp is issuing gold and silver-backed security tokens
Regulated asset-backed security tokens are coming for the entire world, via Malta.
"Tokenisation of tangible assets, like Gold and Silver, will eat the world," Canamex says.
"Only a few, with soul in the game, are sufficient to really move the needle," said Canamex CEO David Vincent. "The capital markets do not evolve by consensus, the majority, academic economists, over regulation, or tea and scones at Harrods. All one needs is asymmetry, such as today's inefficient and outdated capital markets, and someone with soul in the game, such as MDX and Canamex; then the needle can be moved to bring about the change."
Moving the needle
The gold and silver-backed security tokens are separate digital assets, but both are ERC20 tokens running on the Ethereum blockchain and both were initially made available at a price which reflects about a 30% discount relative to current gold and silver spot prices.
The gold-backed tokens (GOLDUSA) each represent a 1/200 oz of gold and initially went on sale on 17 August, while the Silver-backed tokens (SILVERUSA) launched on 3 October and represent an interest in a half ounce of silver.
Now, with the addition of the MOU with MDX, these tokens are set to arrive on an exchange as an early example of what you can do with security tokens and regulated security token exchanges.
"It is a very exciting time in global capital markets with the upcoming licensing of regulated Security Token Exchanges such as MDX. Security tokens are set to democratise capital markets globally, providing far greater transparency, regulation and pricing efficiency to both token issuers and investors. We are very pleased to be partnering with a highly innovative and progressive company such as Canamex in providing a secondary trading marketplace for their security tokens," said MDX founder Rick Clink.
The MOU is a non-binding exploration of the token listings, but will form the cornerstone and structure for potentially upcoming binding contracts between the parties, according to the MDX press release.
Security tokens are a specific class of digital asset that include a range of new information requirements. Essentially, the tokens themselves and the platforms they're listed on will generally be communicating information on who owns them, their verified identities and the other legal requirements for securities trading. This is both a technical and regulatory shift, which MDX and Canamex aim to cover.
The point of security tokens, and other tokenisations of physical assets, is to create a reliable digital version of the asset which can be traded, programmed and utilised more easily and efficiently than their more traditional metal and paperwork forms.
It's exactly the kind of asymmetry that can move the needle.
Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VET, XLM, BTC, ADA