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.”‎

He continued

“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.” ‎