Canadian precious metals firm Yamana Gold Inc. (NYSE: AUY) (TSX: YRI) on Monday announced a groundbreaking partnership with blockchain developer Emergent Technology Holdings. The collaboration aims at crypting gold supply chain by developing technology infrastructure, framing policies and setting up effective compliance standards.
In a statement, the Toronto-based gold exploration company said it will license Emergent’s blockchain-based supply chain solution, which tracks sourced gold from mine, to refinery, to vault.
Tapping blockchain capabilities is a relatively recent trend in logistics. This approach is centered on creating a digital distributed ledger to create a single electronic place where all the myriad documents related to a shipment could be housed. It is also thought that blockchain solutions could be effective in enhancing the metals traceability and for reducing costs associated with factoring.
The adoption of blockchain technology in gold supply chain will significantly reduce operational expenses with increased efficiency, transparency and thus, the overall demand.
In addition to its great advantages in terms of cybersecurity, Emergent’s solution uses Blockchain to administer smart contracts among the parties involved in the delivery of gold-bearing material.
This decentralized system will help buyers, auditors and other players use a mobile application that scans smart chips in tamper-proof seals to record transfer of custody and other data on the blockchain.
This innovative technology also allows miners, refiners and other supply chain participants to check the chain logistics such as tracking shipments, bills, invoices and other transition documents.
Commenting on the news, Peter Marrone, Yamana’s CEO said:
“Yamana is committed to mining metals ethically and responsibly. One element of this is our commitment that all of our gold can be verified as conflict free. While our conformance with the Conflict-free Gold Standard is independently attested to each year, we see significant efficiencies, value and potential for greater assurance by tracking title and provenance of gold on a blockchain data network throughout the gold value-chain. We began working with Emergent in early 2016 and the platform they have developed proves provenance, assuring buyers and investors that the gold they buy is from responsible sources. A digitized supply chain process will improve efficiency and transparency.”
Emergent’s Chief Administrative Officer, Andrew Parsons, added:
“We are delighted to be working with Yamana on this initiative. We have created a connected record across each stage of the supply chain that is immutable, irrefutable, auditable and transparent.”
“Our platform was developed by the world’s top minds in blockchain technology and delivers absolute confidence that all the gold in our ecosystem is 100 percent responsibly sourced. Financial institutions, corporations, jewelers and individual investors are all set to gain as we drive demand for conflict-free gold.”