Agnico Eagle and BMO execute first Tradewind Origins blockchain transaction
Tradewind Markets, a financial technology company enabling physical assets to be settled and mobilized through digitization, has announced the first ever trade using Tradewind ORIGINS, its provenance management solution.
This transaction between Agnico Eagle Mines and Bank of Montreal (BMO), confirmed by the Royal Canadian Mint, marks the first time economic segregation — typically used with carboncredits — and blockchain technology have been used for precious metals supply chain management.
This allows purchasers of Tradewind’s VaultChain products to choose suppliers that meet their requirements while addressing the market’s need for transparency.
Economic, social and governance (ESG) standards for precious metal miners are becoming increasingly important, and investors make more decisions based on ESG performance.
“This is a long-awaited development for precious metals markets,” Michael Albanese, Tradewind Markets CEO said. “By delivering meaningful data on how, when, and where these assets were sourced we are providing the ecosystem with greater visibility into the precious metals global supply chain. By differentiating their metals, companies are unlocking the latent value of their production.”
Suppliers of precious metals record detailed information about the provenance and supply chain of the products they mine and source using Tradewind ORIGINS prior to delivery to a participating refiner.
Refiners accept delivery of the material, confirm the ORIGINS data provided by the miner or supplier, and embed the information into digital records of ownership on the Tradewind platform.
Market participants can then trade precious metals credits on the Tradewind platform, with visibility into the original supplier and refiner of the metal. In this transaction, Agnico Eagle has sold 5,000 ounces of LBMA-good delivery gold from its flagship LaRonde mine in Quebec, Canada to BMO.
The Royal Canadian Mint will refine gold from Agnico and tag the digital records of ownership with Agnico’s self-reported provenance information, including the origin of the metal, adhering to high ESG standards.