Ledgermatix – Central Metals Releases New Fintech Platform with Gold Encrypted Digital Ledgers

What is Ledgermatix?

The international precious metals dealer Central Metals Corp. (CMC) launched a new platform in April this year that seeks to enhance corporate finance and liquidity in private capital markets. Ledgermatix is a new financial technology platform based on gold encrypted digital ledgers. Through the innovative ledger technology, Ledgermatix augments global trade settlements, corporate finance, and private placements. Founder and CEO of the company Bosko Kacarevic calls the platform “a quasi-gold standard for the digital age”. Investopedia notes that the gold standard is currently not being used by any government, but Ledgermatix hopes to revamp it to fit the modern world.

Gold Encrypted Digital Ledgers

Similar to blockchain, the encrypted ledger works as a time-stamped audit trail for every transaction. The technology ensures that transactions are verified and authenticated for proof of ownership. What sets it apart is that the book-entry system is tailored for both gold-pegged and traditional securities. AP News details that the in-house managed platform “permits the capital formation and secondary liquidity of private securities, through a peer-to-peer closed loop network.”

Gold-Pegged Notes

The platform also allows CMC to issue gold-pegged notes (GPN), which is a tradable security linked to a certain quantity of actual gold. Since CMC also offers global logistics solutions for precious metals, the platform allows for the gold to be delivered on demand. Kacarevic also sees Ledgermatix as the opportunity for investors to diversify from the mainstream market. Therefore, GPN is an essential feature to the platform because it allows them to invest in gold security in a totally different market. Moreover, investing in an ETF means that the fund is still technically owned by the bank or a third-party custodian. On the other hand, GPNs are registered directly to the name of the account holder. However, it can also be used by international firms for trade settlements in more than 100 different currencies. This is why Ledgermatix is looking for their ledger to be the gold standard of the future.

Gold-in-Motion Account

Another notable feature of the platform is the gold-in-motion account. This is where members can use their gold as collateral in exchange for a tenable credit line, permitting them to compete in corporate finance. Gold is an effective collateral due to its relatively stable value. As explained in FXCM’s gold trading market post, the precious metal is perceived more stable than other investments such as stocks, which are much more volatile, and copper, which has an expiration date. Furthermore, many companies are catching on to the value gold has in modern day finance. Last year, CityFALCON came up with a curated news service platform that offers data and transparency for gold investments and trade. This service shows how esteemed gold still is to investors and why it is no surprise that companies like Ledgermatix are creating gold encrypted digital ledgers. In the current economic situation, gold continues to be seen as the best safe haven asset and shows no sign of being replaced.