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Investors in gold and silver are looking for new ways in which to buy exposure to bullion market prices without some of the costs and time constraints associated with other, more traditional avenues.

Hyperion Exchange, an SEC-regulated security token exchange, is poised to launch a joint venture with Kinesis Money, a company offering a monetary system based on digital gold and silver currencies, in an effort to provide investors with the chance to trade digital security tokens using blockchain technology. This will enable trades to be completed more efficiently and at lower cost than on traditional stock markets.

The Kinesis Monetary System is comprised of two digital currencies based on allocated ownership of physical gold (KAU) and silver (KAG) which can be exchanged digitally as an alternative to fiat currency. The transaction fees are accumulated whenever the currencies are sent, spent or traded and are proportionately redistributed to all Kinesis currency holders.

Holders of the Kinesis Velocity Tokens (KVT), currently being offered in an Initial Token Offering, will receive the highest share of these fees, collecting a 20% proportionate share as a recurring yield. The dual purpose of the new venture is to list the Kinesis Velocity Token (KVT) on the Hyperion Exchange, as well as making the Kinesis gold and silver-based digital currencies available as ‘stablecoins’ on the Hyperion Exchange.

Institutional gold trading exchange

The currencies offered by Kinesis Money were developed by the institutional gold trading exchange Allocated Bullion Exchange (ABX), which has stringent third-party audit and quality assurance processes in place. KAU and KAG therefore provide alternatives to the fiat-based stablecoin cryptocurrencies that have been widely critiqued for failing audits and falling short of the 1:1 allocation of fiat currencies they promised upon purchase.[1]

The Hyperion Exchange is regulated by the US Securities and Exchange Commission (SEC), the US Financial Industry Regulatory Authority and the non-profit Securities Investor Protection Corporation.

Michael Zavet, CEO of Hyperion Exchange, said: “Hyperion is a unique exchange that lists securities tokens, financial securities backed by tangible physical assets, on the blockchain. At Hyperion, we are committed to ensuring best practice in regulatory compliance, listing tokens only after comprehensive verification checks.”

Kinesis’s plan is to digitise both gold and silver on the blockchain, with physical 1:1 allocation to the underlying assets, makes it a stablecoin fit for the platform. Part of the attraction for investors will be the ability to trade from their more volatile cryptocurrency positions straight into gold and silver in the form of the KAU and KAG currencies. The company reported that it has already sold in excess of $50 million in the Kinesis Velocity Tokens.

Participants can spend physical bullion using the Kinesis debit card and the Kinesis eWallet.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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