eMetals are the next best thing that will be converted into digitized shares to represent real-world commodities [like metals] and the resultant can be purchased using digital assets as per BPG [Banquecorp Physical Gold] Group’s tweets.
BPG Group is a heavyweight company in the material refinery industry which also deals with efficient methods to reuse scrap metals and they are spread across Europe. As per their tweet on January 7, customers will be able to buy these shares of metals using either cryptocurrencies or fiat currencies.
BPG Group tweeted:
“eMetals will purchase the real-world commodity stocks based on customer demand, and generate IOUs to represent each share. Customers will be able to use select cryptocurrencies, as well as fiat currencies to purchase the IOUs. IOUs will be backed 1:1 to the real-world securities.”
To clarify the matter more, BPG Group said that stocks will be backed as 1:1 and deposited into separate segregated accounts. Moreover, the group added that for the bank’s use they will use “Kamakura study” which will provide default probabilities.
@RickCrypto1 asked if they are backed and regulated by a regulating body which confirms that the group actually have the backings that they claim.
BPG Group replied:
“We will release reports that will indicate that we do possess sufficient capital (stock) to back each individual IOU token on a 1:1 basis. We will disclose the names of banks & brokers as well.”
BPG Group tweeted:
“Equity markets are closed more hours on the day than they are open. User will be able to trade shares of popular commodity companies on eMetals platform 24 hours a day, 7 days a week. #Ripple #XRP #Commodities”
The news of this announcement first surfaced the crypto-world in 2016, when GateHub published a blog about BPG Group about using Ripple protocol. The blog stated:
“BPG digital gold-backed IOUs, the “XAU”, are now issued within the Ripple protocol. The XAU is enabling digitized gold investment and the ability to use XAU for remittances and payments.
This way the physical gold can be converted into any fiat currency such as USD, EUR or any other crypto-currency. Moreover, an XAU can be redeemed and physical gold that is stored in BPG’s Ljubljana vault shipped to you.”