Asset tracking blockchain technology company Security Matters Limited (ASX: SMX) has signed an MoU with The Perth Mint to create an initiative that will focus on the development of the world’s first mine-to-marketplace ethical gold supply chain assurance solution.
The move follows the World Gold Council’s call for responsible gold mining principles and the London Bullion Market Association’s decision t set up a responsible gold guidance for Good Delivery Refiners.
Following regulatory approvals, the initiative will lead to the formation of trueGold, with Security Matters Limited and The Perth Mint then commencing the development of a high-tech proprietary supply chain solution utilising SMX’s disruptive technology and all relevant industry players will be invited to participate.
SMX Founder and CEO, Haggai Alon, said the solution is based on the utilisation of SMX’s scientifically proven molecular markers and is focused on providing transparency and accountability for all gold industry stakeholders. It will also leverage SMX’s patented proprietary reader to ensure the highest levels of quality and integrity are maintained.
The establishment of trueGold will follow the completion of a two-year project in collaboration with The Perth Mint whilst consulting with industry regulators to establish how best to design the technology and logistical roll out of the solution.
Full launch of the solution is expected in Q1 2021, 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.
The Perth Mint CEO Richard Hayes, said his organisation and SMX will be seeking the involvement of other gold industry supply chain participants through expressions of interest as part of the commercialisation.
This is a particularly significant development given the increasing focus on Environmental, Social and Governance (ESG) practices across the world pertaining to the gold supply chain,” Mr Hayes said.
“This game changing technology will report on the origin of the gold and how the metal moves through the entire production and distribution process. This complete transparency will instil even greater trust in a commodity which already provides the ultimate refuge during times of economic and geopolitical turmoil.”
Mr Alon said that notwithstanding Brexit, London is and will remain the pivotal point of the gold industry
“We are honoured to be working with a leading name within the gold industry, The Perth Mint. Establishing this initiative is only the first step for SMX in demonstrating how our technology can be used and utilised to validate and maintain the integrity of premium ores and we are working tirelessly to create an authentic and transparent marketplace for all commercial and consumer goods,” Mr Alon said.
“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.
“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.”