Kinesis Launches Segregated Facility for Coins and Bars

Sam Briggs

25/08/2021

Industry-first

Additionally, through EPD (coins and bars), holders can benefit from the security and access of Kinesis’ segregated vaulting, while earning a yield on their holdings, paid monthly in KAU and KAG. 

Ground-breaking liquidity

Previously, if a coin or bar holder wished to gain liquidity on their collection, they would have no choice but to go through the drawn-out and irrevocable process of selling their holdings. Through Kinesis’ new segregated facility, once deposited, users are able to access instant liquidity on their coin or bar holdings, while maintaining the right to redeem those same coins or bars deposited, at any time.

Can I redeem my coins and bars?

In terms of redemption, the depositor holds the exclusive right to redeem their segregated coin and bar holdings and can do so, at any time, with the applicable redemption fees applied.

How does segregated storage work? 

The coins and bars will be segregated within the ABX cage at the participating vaulting provider, with depositor and inventory details being attached to the deposit record.

In circumstances where the coin or bar deposit is below the fineness of .9999 for gold and .999 for silver, Kinesis has implemented strict rules to ensure that 1 KAU remains based on an exact 1:1 allocation of 1 gram of .9999 fine physical gold bullion and 1 KAG remains based on an exact 1:1 allocation of 1 oz of .999 fine silver, and the integrity of the Kinesis Monetary System is preserved, at all times. 

How does it work?

Kinesis users wishing to deposit coins or bars will need to have their coin and/or bar collection assayed at their expense with a service provider of Kinesis’ choosing. The assayer will provide Kinesis with details of the fine weight of the gold or silver contained in each submitted coin and/or bar. Kinesis will only recognise the fine weight of the metal that each coin contains. The fine weight of the gold or silver contained in the coins and bars will then be emitted as KAU or KAG into the depositor’s account.

Tried & tested

The segregated facility program has already been beta tested and is in use with an anchor investor depositing approximately 1,600 gold coins into the system, with each and every coin being catalogued and photographed. These coins will be represented and publicly available in the next Kinesis audit. Furthermore, we have already received significant interest from major private collectors, as well as other larger entities within the precious metals sphere. 

In enabling users to digitalise their gold and silver coins and bars, Kinesis is offering users a service unique within the precious metals industry. The new segregated facility opens up the liquidity, security and value of the Kinesis Money platform to an entirely new section of the precious metals market.

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