Goldmoney Inc. (TSX:XAU) (“Goldmoney”) (the “Company”), a precious
metal financial service and technology company, today unveiled the
addition of vaulted Bitcoin and Ethereum as secure and
fully-reserved offline investable assets within the Goldmoney®
Holding, a major enhancement that allows qualified clients to buy,
sell, and exchange cryptocurrencies with nine global currencies as
well as gold, silver, platinum and palladium bullion. With today’s
launch, Goldmoney becomes the world’s first publicly traded and
regulated financial service to offer insurable, auditable, and
Anti-Money Laundering (“AML”) compliant exposure to
cryptocurrencies.
For over 15 years, Goldmoney has been the market leader and
original innovator providing direct online access to securely
vaulted and insured precious metals. As the market for blockchain
assets continues to grow, Goldmoney clients have approached the
Company seeking ultra-secure and financially transparent solution
for custody of blockchain assets, where an institutional-quality
solution still does not exist in the digital asset marketplace. As
a result of many months of engineering and product development to
meet client demand, the Company is pleased to offer the following
services and innovations for eligible Goldmoney Holding owners:
- Buying and selling of digital assets that are safely secured in
vaulted cold storage. Cryptocurrency offerings currently include
Bitcoin and Ethereum; additional leading digital assets will be
added over time.
- Funding of Goldmoney Holdings with 50 types of cryptocurrency,
enabling wallet holders to sell a variety of cryptocurrencies and
fund their Goldmoney Holding with fiat currency to access precious
metals and other Goldmoney service offerings.
- Will seek the establishment of peer-to-peer (“P2P”) lending
capabilities on digital assets in partnership with Lend and Borrow
Trust, allowing owners of Bitcoin and other assets to safely borrow
against their positions.
ColdBlocksTM by BlockVault to be launched by year end:
Cryptographic innovation for the reification of blockchain
cryptocurrencies into institutional-grade investable
assets
Trillions of dollars in managed institutional money cannot
currently be invested in public blockchain assets such as Bitcoin
due to a lack of custodial transparency, institutional-grade
insurance, AML standards for chain of integrity, and auditability
under IFRS or GAAP accounting standards. Other issues such as
counterparty risk in settlement and custody and regulatory
compliance also preclude qualified custodians and regulated
institutions from participating in the space. ColdBlocks by
BlockVault endeavours to solve these industry constraints.
Like London Bullion Market Association (“LBMA”)-approved
precious metal bullion, ColdBlocks are prefilled units of
cryptocurrency that, through a novel cryptographic method and a
physical security aspect, are insurable and auditable as
vaulted-custodial assets at any LBMA-eligible vault location around
the world that currently secures precious metals. ColdBlocks can be
created using any SHA-256 cryptocurrency and have other features
that ensure the chain of integrity for the underlying
cryptocurrency, knowing precisely where and when each unit was
mined and ensuring the cryptocurrency value is never commingled
with those belonging to other clients. Through Goldmoney’s
experience and expertise in dealing and vaulting precious metals
with analogous requirements and standards, the Company’s new
BlockVault subsidiary is well positioned to deliver such
solutions.
Due in part to the market opportunity, BlockVault will offer
ColdBlocks cryptocurrency vaulting and dealing as a B2B API
offering. Additionally, a sales team of financial services industry
professionals will be hired in the Company’s Toronto office to
build the new business line by offering these services to regulated
financial service providers, brokerage firms, investment managers,
and high-net-worth individuals.
“While institutional markets wait for a bitcoin ETF or other
inefficiently-securitized financial structures, we’ve applied our
first-principles approach to lowering counterparty risk and
increasing accessibility in precious metals to develop a novel
solution for secure and insured ownership of blockchain assets,”
said Goldmoney CSO Josh Crumb, inventor of the ColdBlocks standard.
“With today’s launch of digital asset dealing and cold storage
custody, Goldmoney becomes one of the first publicly traded
financial service companies to offer custody services for
blockchain assets and one of the only market providers globally
with fully transparent and audited Company financials; assurance of
one-for-one backing of offline cold storage; and best-in-class
regulatory oversight, including know-your-customer (“KYC”) AML
policies. With nearly $2 billion in client assets and more than 1
million user signups, Goldmoney has immediately established itself
as one of the largest and most well-capitalized providers in the
digital asset and cryptocurrency sector.”
“As the market for Blockchain assets and cryptocurrencies has
transitioned from its original premise of powering payments and
remittances with a decentralized proof-of-work token to becoming a
nascent speculative asset class, it has been perplexing to watch
multiple technology companies serve as custodians for these assets
– often safeguarding billions of dollars of wealth – while
providing nearly zero accountability, transparency, or compliance
with what are the most basic standards in the financial services
industry,” said Goldmoney CEO Roy Sebag. “For example, not one of
the five leading cryptocurrency custodians publishes an annual or
quarterly audit, which has undoubtedly prevented most institutional
investors from participating in the cryptocurrency space. The idea
for ColdBlocks came about when one of our leading institutional
investors asked us to devise a way for regulated hedge funds to buy
and sell cryptocurrencies, while providing the regulatory
assurances mandated by their prospectus offering under
securities-law. We have invested significantly in R&D over the
last few months and used our experience and relationships in
cryptography, vaulting of physical assets, insurance, financial
regulation, and investment management best practices to develop our
first-to-market solution.”
“While we’re excited to launch these new services and solve
these persistent challenges for our clients, we feel it’s important
to remind investors that there are still significant risks when
investing in this nascent asset class. Blockchain assets can likely
never achieve the store of value, low volatility, and duration
risk-free properties of precious metals, as precious metals possess
these three related properties physically in nature – not due to
economic theory or network effects in markets. While
cryptocurrencies likely possess revolutionary new forms of
information utility and transactability, and may be an important
asset class for speculation, diversification, hedging the risks and
unintended consequences of extreme-centralization in markets, we
remain cognizant of the risk that any or all of these assets may
ultimately lose all of their value or be deemed illegal by local
governments or regulators. It is with this view in mind that we
proceed cautiously yet optimistically on behalf of our
stakeholders, but continue to value capital preservation over
short-term gains when inappropriately risk-adjusted,” added Crumb
and Sebag in a joint message to clients and
shareholders.
About Goldmoney Inc.
Goldmoney Inc., a financial service company traded on the
Toronto Stock Exchange (TSX:XAU), is a global leader in precious
metal investment services and the world’s largest precious metals
payment network. Safeguarding nearly $2 billion in assets for
clients located in more than 150 countries, Goldmoney is focused on
a singular mission to make precious metals-backed savings
accessible to all. Powered by Goldmoney’s patented technology, the
Goldmoney® Holding is an online account that enables clients to
invest, earn, or spend gold, silver, platinum, palladium and
cryptocurrencies that are securely stored in insured vaults in
seven countries. All bullion assets are fully allocated and
physically redeemable property. Goldmoney Wealth Limited is
regulated by the Jersey Financial Services Commission (JFSC) as a
Money Services Business. Goldmoney Network is a reporting entity to
the Financial Transactions and Reports Analysis Centre of Canada
(FINTRAC), and is registered with the Financial Crimes Enforcement
Network (FinCEN) in the U.S. For more information about Goldmoney,
visit goldmoney.com.
Media and Investor Relations Inquiries:
Jacquelyn HumphreyDirector of Global
CommunicationsGoldmoney Inc.jac@goldmoney.com
Josh CrumbChief Strategy Officer &
CFOGoldmoney Inc.+1 647-499-6748
Forward-Looking Statements
This news release contains or refers to certain forward-looking
information. Forward-looking information can often be identified by
forward-looking words such as “anticipate”, “believe”, “expect”,
“plan”, “intend”, “estimate”, “may”, “potential” and “will” or
similar words suggesting future outcomes, or other expectations,
beliefs, plans, objectives, assumptions, intentions or statements
about future events or performance. All information other than
information regarding historical fact, which addresses activities,
events or developments that the Goldmoney Inc. (the “Company”)
believes, expects or anticipates will or may occur in the future,
is forward looking information. Forward-looking information does
not constitute historical fact but reflects the current
expectations the Company regarding future results or events based
on information that is currently available. By their nature,
forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions, forecasts,
projections and other forward-looking information will not occur.
Such forward-looking information in this release speak only as of
the date hereof.
Forward-looking information in this release includes, but is not
limited to, statements with respect to: service times for
transactions on the Goldmoney network; growth of the Company’s
business, expected results of operations, and the market for the
Company’s products and services and competitive conditions. This
forward-looking information is based on reasonable assumptions and
estimates of management of the Company at the time it was made, and
involves known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking information. Such factors include, among others:
the Company’s history of operating losses; future capital needs and
uncertainty of additional financing; fluctuations in the market
price of the Company’s common shares; the effect of government
regulation and compliance on the Company and the industry; legal
and regulatory change and uncertainty; jurisdictional factors
associated with international operations; foreign restrictions on
the Company’s operations; product development and rapid
technological change; dependence on technical infrastructure;
protection of intellectual property; use and storage of personal
information and compliance with privacy laws; network security
risks; risk of system failure or inadequacy; the Company’s ability
to manage rapid growth; competition; effectiveness of the Company’s
risk management and internal controls; use of the Company’s
services for improper or illegal purposes; uninsured and
underinsured losses; theft & risk of physical harm to
personnel; precious metal trading risks; and volatility of precious
metals prices & public interest in precious metals investment;
and those risks set out in the Company’s most recently filed annual
information form, available on SEDAR. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information. The Company
undertakes no obligation to update or revise any forward-looking
information, except as required by law.
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