According to a new announcement, TokenOro will soon be unveiling its Preferred Security Token to the market via WORBLI. The company is currently in discussions with ten mining companies to make this idea a reality.
TokenOro has a novel new idea which it will be unveiling formally sometime this year. Reaching out to more than ten mining companies in Nicaragua, Peru, Nevada, and elsewhere, the team is looking to tokenize the production and ownership of gold. The project is led by Chairman James McKenzie, a veteran in the precious metals and mining industry. The company announced its intentions in a recent press release.
Most gold miners around the world are considered risky investments by many. Oftentimes, they are only accessible to certain groups. McKenzie believes that through tokenization, these long-standing financial gold oligopolies could be broken apart through new financial vehicles.
As McKenzie commented in the company press release:
“We’re offering preferred shares of our equity in the form of a digital token, one that is typically only accessible to specific groups. This could begin the long-awaited disintermediation of traditional financial gold oligopolies. TokenOro is looking for prospects that might have a defined resource of up to 10 million ounces of gold, whilst meeting NI43-101 or JORC reporting standards.”
For each TokenOro token purchased, 50% of the proceeds will go towards purchasing gold bullion and/or gold certificates. The other 50% will go towards global mining production and its operations. The company also promotes a “green gold” initiative.
TokenOro is also developing its own custom software which is currently in-the-works by WORBLI and its partners. Together, the distributed ledger will provide a clear, transparent record of all token sales and gold-related investments.
TokenOro is not the first company to announce its intention to tokenize gold bars. JP Morgan Chase has similar plans which it announced in late 2018. Canamex Gold Corporation is also working on the same concept with the Malta Digital Exchange.
The date of the TokenOro STO is still yet to be announced, but keep your eye on it going forward.
Do you believe tokenizing gold and its production is a lucrative idea? Will it boost liquidity in this market? Let us know your thoughts in the comments below.
Image courtesy of Irish Tech News.