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Liquid Noble‘s reserves “are topped up and ready for launch” on August 26. The Australia-based company will offer blockchain-tokenized precious metal assets with fiat trades, providing a fast and simple way for anyone to invest in bullion and possibly one day even use those tokenized assets for purchases.
Speaking to CoinGeek, Liquid Noble Chief Marketing Officer Annette Fortner noted an interest in precious metals and their stability relative to fiat currencies in recent years. This has seeped into mainstream media coverage amid reports the BRICS group is seeking to create a gold-backed settlement currency, shifting geopolitics and increasing uncertainty surrounding fiat currencies’ ability to retain trust and value.
People concerned by these trends, who have long been a disproportionately large percentage of blockchain and digital asset proponents, would be looking for ways to make trading in and out of precious metals simpler and faster.
“With that knowledge in mind, it’s essential for us to provide our users a way that they can not only hedge the loss of purchasing power inherent with fiat currency, but also a way for them to flexibly hold and transact in precious metals if they so choose.”
“As inflation erodes our purchasing power globally, and with gold prices soaring to record highs, the world is increasingly considering a return to a gold standard. Gold‘s enduring ability to preserve value through economic fluctuations is well-documented. By embracing gold, a currency with a rich history and promising future, Liquid Noble offers a modern solution, empowering investors with an affordable and seamless way to protect their wealth without losing any of the convenience or liquidity of normal money.”
How Liquid Noble works: The BSV blockchain, Tokenized protocol and physical reserves
Liquid Noble tokenizes its fiat and bullion reserves using the Tokenized Protocol on the BSV blockchain. Customers can manage accounts using the dashboard on a desktop browser or via a progressive web app (PWA) on mobile devices.
At launch, Liquid Noble will be available for Australian residents and non-Australians with AUD accounts (though not those based in the United States). Bullion offered for tokenization and (optional) physical delivery includes gold, silver and platinum in a “huge range of coins and bars” and at close to spot prices. It does not charge storage fees, and users who’ve been on Liquid Noble’s waiting list will get transaction fees waived for the first three months.
Fortner said the firm is currently working with two bullion providers in Australia: one based in Melbourne and another with branches in Sydney, Melbourne, Brisbane and Gold Coast. It’s also working on expanding its list of bullion and storage providers “to offer our users the most comprehensive selection of previous metals on the market.”
Since building trust and a reputation for reliability is a major issue for any new company offering these kinds of services, Liquid Noble is putting mechanisms in place to ensure everything is done properly.
“The trust of our customers is our highest priority, which is why we plan to engage independent auditing firms to verify our reserves every six months,” Fortner said. “Where possible, any allocated gold belonging to Liquid Noble will be photographed during the independent audits and we can release the associated information to customers of our platform upon request.”
Along with trades in and out of specific metals, there are also pool-allocated generalized products on offer.
“Third-party suppliers managing these holdings have a long-standing and strong reputation in the bullion industry for many years, and these reserves are insured by Lloyd’s of London,” she added.
Solving the compliance and efficiency problems
The concept of tokenizing bullion on a blockchain network for trading or as a bullion-backed spending currency isn’t new; such services have existed for a while. In fact, active projects are attempting to create gold-backed digital tokens even before Bitcoin arrived.
In the latter case (e.g., E-Gold and Liberty Reserve), the issues were regulatory compliance, trust and security. With blockchain, the main issues are cost, speed and openness. Some services run on proprietary blockchains with opaque governance or which aren’t particularly decentralized. On public networks like Ethereum, there are well-known issues with congestion and high “gas” fees, making them impractical for small transactions.
Those looking to make simple, large-scale investments in precious metals may not mind fee or speed issues, but why have them when it’s not necessary? Additionally, BSV’s near-instant transactions and minuscule usage fees open up services like Liquid Noble to smaller investors and faster traders.
By issuing tokens for customers’ assets, Liquid Noble also opens up the possibility of a bullion-backed “currency” that could conceivably be used as money for everyday purchases. This would naturally depend on customers and businesses accepting the tokens as payment, but in the blockchain era, that idea isn’t as far-fetched as it once was.
“Starbucks is not going to wait 30 minutes for a transaction to go through, and people are not going to want to pay $10 on top of their $5 coffee purchase. Our competitors are simply not practical or scalable enough for everyday use.”
Who is eligible to use Liquid Noble? (for now)
Liquid Noble stresses compliance with financial regulations for its own operations, customers, bullion storage and providers. So, at launch time, its services are aimed only at Australian residents and/or users of the Australian dollar (AUD). Should you live anywhere outside Australia other than the United States, and have a multi-currency account at an international bank or neobank, it’s still possible to join in (as long as your institution is compliant with Australian laws). Anyone who’s unsure should contact Liquid Noble directly to enquire. The company also has a waiting list for international accounts and a newsletter with regular updates.
To trade in and out of fiat and precious metals, you’ll need to be able to transfer AUD to Liquid Noble’s banking account and also receive AUD transfers yourself. The company expects this to change in the future once it is able to guarantee compliance with other jurisdictions and currencies.
Users who’d like to receive physical delivery of bullion can have it sent anywhere in the world for a barring fee and shipping. However, they’ll still need to transfer AUD initially.
Customers with Australian bank accounts (or local payment service PayID) can deposit near-instantly, although Liquid Noble is performing these functions manually in its first few weeks of operation to ensure everything is working properly. After that, issuing NobleAUD tokens upon receipt of a desposit will be automated and instant. AUD fiat withdrawals take 3-5 working days, and physical delivery of coins/bars will arrive overnight (for under 5kg) in metropolitan areas and 2-5 days for larger deliveries and remote areas. International shipping depends on the location.
“Our mission at Liquid Noble is to democratize precious metals investments and provide our users with as many options to leverage those investments as possible,” Fortner said.
While there are many ways customers could potentially use its services, the focus is on making precious metal assets as effortless and instantaneous to acquire (or sell) as possible. These options will all exist whether international geopolitical and economic events stabilize or become more volatile—all running on BSV, the most advanced and efficient blockchain technology available.
Watch: Gold as a commodity
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