Sandra Ro, head of digitization at CME Group, says the new RMG product is an entire trading eco-system, backed by gold on the blockchain: “When you purchase RMGs, you will effectively have real gold that is allocated from a direct ownership standpoint that is completely reserved – there is no re-hypothecation, there is no lending on that gold, there will be enough physical gold to represent all the RMGs that are issued.”
Convert precious metal claims into digitized assets.
A permanent, tamper-proof blockchain ensures integrity.
"Smart Certificates" authenticate sale and transfer.
Powered by Symbiont's distributed ledger technology.
Asset-Backed Smart Securities
Orebits provides asset-digitization services that are managed on a distributed ledger via smart contracts called "Smart Certs". By digitizing ownership records of recoverable precious metal reserves into digital certificates called Orebits, reserve owners and peripheral investors are able to maximize their liquidity. The resulting increase in liquidity may enable the Smart Certs to be utilized for financing, collateral, private transactions or simply as a line item on his/her balance sheet.Contact Us
The Orebits Corp. platform uses Symbiont’s (www.Symbiont.io) distributed ledger technology and smart contracts platform to create a new digital asset class—one made possible by digitizing claims to precious metal and mineral reserves—transforming illiquid commodity reserves into fungible digital assets. For the record, distributed ledger technology is an ideal platform for asset digitization because it provides an immutable record of the origination and provenance of these new assets, while creating a tamper-proof repository for all documentation backing the issuance. Similarly, the Symbiont platform provides a shared backend system for multiple, trusted parties that need to share data and logic in real time. It is a decentralized database that replicates and executes application logic in the form of smart contracts.Learn More
Extreme volatility in today's financial markets has brought greater attention to the value of commodities and to the universal exchange rate of gold specifically. Despite this, today's stakeholders find themselves in a difficult situation. While they possess tenure to a highly coveted and valuable commodity, some reserves lack a market mechanism to fully monetize the holding. By digitizing mineral rights into Orebits Smart Certs, reserve owners are able to have liquidity prior to the reserves being mined, refined and sold in the marketplace. This provides an opportunity to collateralize illiquid assets for loans, private exchange or sale to investors seeking an attractive risk-to-return ratio or to simply better quantify the value of their asset for tax and financial reporting purposes.Contact Us
Specifications and Risks
- Orebits are a digitized representation of the ownership of precious metal and mineral reserves.
- At the time of digitization, one Orebit is secured by 5 ounces of Gold reserves based on an 80% discount.
- Although this discount is quite conservative, the gold market is a volatile one that maintains large movements of value, operational costs, administrative expenses, and a variety of other tangible/intangible costs and variables.
- Orebits Corp. will review all required documentation on an annual basis to ensure Claim Owner compliance to the ADSA (Asset Digitization Service Agreement).
- Orebits Corp. will provide, upon request, any reported or discovered material changes to the Proven Gold Reserves Pool (for the digitization of Orebits) to Account Holders on the Orebits Ledger.
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Latest News & Articles of Interest
The latest information concerning gold, the financial markets and blockchain technology.
Orebits Corp., in partnership with and enabled by Symbiont's distributed ledger technology, has created a new asset class for owners of, and investors in, unrefined proven gold reserves in the form of "orebits" -- digitized assets, backed by proven gold reserves and exchanged electronically on a peer-to-peer basis. It's a first in the industry, potentially changing the precious metals financing marketplace forever.
Euroclear product strategy and innovation lead Angus Scott is one of many notable authorities who sees the upside of using blockchain technology. In a recent statement, he made a point of explaining the advantages in terms of efficiency: “This is a real first step in bringing a new settlement capability to the London bullion market that will help lower risk and simplify the post-trade process.”
For the first time in the Islamic world, Gold has earned the blessing of Shariah law as an investment—a long-awaited, ground-breaking event for Islamic investors and the gold industry at large. Mark Mobius, executive chairman of Templeton Emerging Markets Group, echoed the general sentiment, saying “the time has come for gold instruments in Islamic finance.”
Stelian Balta, CEO of DinarDirham, predicts a big disruption with blockchain and distributed ledger technology, but that’s likely to be a good thing. He explained that gold can be moved, stored or used much easier and more securely in digital form, eliminating many security risks that arise when dealing with large quantities of physical gold. The advantages are in the details…
Marley Gray, Director of Business Development, Blockchain at Microsoft, described smart contracts as a mechanism for creating a more collaborative economy. He suggested, “Blockchain and smart contracts can facilitate that exchange of value across organizational boundaries with a lot of moving parts.” The key is rethinking the fundamentals of B2B and B2C on a day-to-day basis.
In 1996, Blockchain Pioneer Nick Szabo described a smart contract as “a set of promises, specified in digital form, including protocols within which the parties perform on these promises.” While the technology available to support smart contracts has evolved considerably since then, this definition continues to capture the essence of what a smart contract is and does.
According to David Janczewski, director of new business for the Royal Mint, the market for blockchain and distributed ledger technology is opening up tremendous opportunities for savvy investors: "What we're trying to do with the announcement of Royal Mint Gold - or RMG - is to really address this issue and offer a better way to invest in solid digital gold.”
Perianne Boring, founder and president of the Chamber of Digital Commerce, is a strong believer in promoting digital and blockchain-based technologies, but she also knows it takes active engagement and collaboration: “We are excited to work with the technical experts and open source community to further support our efforts on behalf of the blockchain industry.”
The long-held wisdom about gold’s role as a safe haven in times of economic turmoil is no exaggeration. Frank Holmes from U.S. Global Investors argues that, in the event that cash were eliminated, “gold’s role as a store of value would become even more apparent.” He and others forecast that such a scenario would cause demand for gold to skyrocket in spite of high prices.
Symbiont President and Board Chairman Caitlin Long is a vocal advocate of blockchain technology and bringing the benefits to fruition. In her words, it’s fast. It’s secure. And it simply does the job better than anything else: “Symbiont’s platform has more functionality, with superior performance and security, relative to competing blockchains. And it’s already going into production.”
In the words of Jean-Marc Bonnefous, managing partner at Tellurian Capital, a London-based commodity hedge fund, the next step in further monentization of commodities is now being driven by the use of blockchain technology. He suggests the infrastructure in the precious metals business is one area that’s antiquated and holds tremendous potential for investment.
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Frequently Asked Questions
Answers to some of the common questions we face from reserve owners and investors.
An Orebit is a digital representation, at an 80% discount, of unrefined Proven Gold Reserves.
Gold Orebits derive their value from the price of traded Gold. An Orebit, which has the value of one ounce of Gold, is a digital representation of five ounces of Proven Gold Reserves. Gold Orebits take this value from the LBMA AM daily fixing price.
Reserve owners in search of liquidity, digitize their Proven Gold Reserves, utilizing Smart Contract and Distributed Ledger technology to bring Orebits to the market.
Any Investor who desires exposure to the price movement of Gold, while enjoying the benefits of owning an asset on an immutable Distributed Ledger should consider investing in Orebits.
Orebits Corp. provides exposure to the price movement of Gold while limiting the expense of traditional Gold investments. Competing investments such as Futures or Physical Gold require attention to details such as Margin, Storage and Insurance. Orebits do not require additional financial considerations and are therefore a reasonable alternative to currently available methods of investing in Gold.
Yes, all Gold Orebits are fungible.
To invest in Orebits, contact a Orebits Corp. Program Manager and request an account on the Distributed Ledger.
Orebits are a representation of unrefined Proven Gold Reserves that the reserve owner has digitized. We do not consider them a Derivative. However, we believe that the holders of Orebits will be able to create Derivative products from them.
Orebits Ledger LLC is the Special Purpose Vehicle (SPV) where all the UCC-type liens on the Proven Gold Reserves are placed and held as collateral for the purpose of digitization into Orebits.
Orebits Corp. is a Delaware LLC service provider that manages the Orebits Ledger LLC SPV.
The digitization of Orebits takes the form of a 10-year renewable Asset Digitization Service Agreement (ADSA) that allows for continued digitization of Orebits and market liquidity.
In the case of insolvency, Orebits Ledger LLC has the right to claim all Proven Gold Reserves that have been pledged to the pool to allow for the continued backing of all Orebits that are in the market.
At the end of the 10-year period the owner of the Proven Gold Reserves will return the original amount of digitized Orebits to the SPV and the SPV will release all claims back to the owner.
Orebits can be transacted on the Orebits Corp. platform by establishing an account on the Distributed Ledger.