New Gold Standard: The Perth Mint and Security Matters to create world’s first mine-to-client ethical gold and gold production transparency solution
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Special Report: Security Matters and The Perth Mint are forming a joint venture to create the world’s first gold supply chain transparency and tracking solution.
Security Matters (ASX:SMX) is set to build the world’s first mine-to-marketplace ethical gold supply chain assurance product, alongside partner The Perth Mint.
The small cap deals in a state-of-the-art supply chain integrity and asset tracking blockchain technology, focused on creating digital twins to all physical object by irrevocably marking and tracking a range of fungible products and substances to create an end-to-end transparency solution.
It has signed a memorandum of understanding (MoU) with The Perth Mint to create a commercial joint venture called trueGold — the outcome of the duo’s two-year project that, with input from industry regulators, sought to establish how best to design and roll out the technology. trueGold will be a working commercial entity with the objective to build an operation servicing the global gold market, by Q2 2021
Security Matters and The Perth Mint will start developing a high-tech proprietary supply chain solution using the former’s disruptive blockchain technology. Industry players will be invited to participate. Security Matters blockchain technology is powered by the solution it developed between R3 – owned by a consortium of banks – and Quantum Crowd, announced in September.
Full launch is expected in the December quarter this year.
“The trueGold project perfectly demonstrates how easily big changes can be made to supply chains and distribution processes when adopted by leading organisations, and how technology can be used to drive change,” Security Matters founder and CEO Haggai Alon said.
“By differentiating between and employing a different technique to the three product lifecycles — raw material to production, production to commercial and, commercial to recycle — you can create an entire technology driven ecosystem that promotes and drives integrity, anti-counterfeiting, corporate transparency, accountability and sustainability.”
The concept is based on Security Matter’s scientifically proven molecular markers, a chemical-based hidden “barcode” system, which are teamed with a unique “reader” to identify these codes and a blockchain record to store and protect the data.
The project will focus on providing transparency and accountability for all gold industry stakeholders.
trueGold will be launched following the finalisation of testing on all main production processes, the incorporation of client specific elements, formal sign off from regulators and the roll out of a stakeholder acquisition strategy.
This strategy will be focused on the onboarding of miners, insurers, vaults and storage companies, and end product customers including financial institutions, jewellery industry leaders and technology companies.
Richard Hayes, CEO of the The Perth Mint, said the joint venture was a particularly significant development because there was increasing focus on gold supply chain environmental, social and governance (ESG) practices around the world.
“This game changing technology will report on the origin of the gold and how the metal moves through the entire production and distribution process,” he said.
“This complete transparency will instil even greater trust in a commodity which already provides the ultimate refuge during times of economic and geopolitical turmoil.”
Alon said he was honoured to be working with a leading household name within the gold industry, and establishing the syndicate was only the first step for Security Matters in demonstrating how the technology could be used to maintain the integrity of premium ores.
“We are working tirelessly to create an authentic and transparent marketplace for all commercial and consumer goods,” he said.