If it’s exposure to gold that you are looking for, look no further than Digital RFQ ‘DRFQ’. The company’s co-founder Mike Greenacre gained significant experience trading precious metals, before seeing blockchain and tokenisation as a powerful aid to the industry. Now DRFQ is launching a gold mine token, part of a broader pipeline of digital asset tokens, we dug deeper to find out more.
‘Some of the biggest people in the gold industry are being pulled up for apparently not having the cleanest practices. Blockchain is a step change, giving visibility throughout the supply chain cycle. We have the ability to monitor the movement and transformation of gold from source to consumer.’
Precious metals are ripe for tokenisation and the DRFQ token technology is doing just that, creating a commodities financing instrument through a hybrid of crowd funding principles and crypto / smart contract design. DRFQ’s forthcoming gold mine token ‘PGX’ will see investment into a gold mine in return for miners tokens. These tokens represent the Gold in the mine and will permit the investor to be repaid in gold production from the mine they financed. The mine retains its equity whilst investors will be able to liquidate the tokens into gold when the mine is in production.
The PGX token is slated to launch in Q4 on a top 10 crypto exchange. Until then investors can get exposure to gold through AWX, a gold stable coin from partner firm Aurus.io. Aurus have a gold token with an innovative liquidity model, they share the commercial benefits of the project with their AWX token that is a direct investment in the company. The AWX token is available directly from DRFQ.
However, DRFQ have a much broader mandate than just gold. The company is in fact an architect and broker of new token issuances of all types, including a style of token best described as ‘debt-investment tokens’. Mike explained,
‘With tokenisation it’s possible to simplify the relationship between “start-up” and investor. The tokens we design are tradable on secondary markets providing flexibility in the investment. The tokens can be traded around the yield curve of a project, where value can be realised incrementally. Unlike traditional investments where capital is locked up until the project pays a profit or is sold. An ideal market for this is the high end of the UK property market as people are already taking fractional investment in that field’
Property tokens can act like a traditional bearer-bond, carrying with them the full rights to ownership and transfer. The legalese is held within a smart contract in the token itself potentially saving thousands for the investor and issuer in legal fees. DRFQ is exploring this opportunity.
For more information about Digital RFQ see https://digitalrfq.com/