The last few years have seen blockchain technology become a breeding ground for disruptive innovation that is revolutionizing several industries. Cryptocurrencies soon became blockchain’s poster use case because of the ingenious solution it presents to an urgent fiat problem. As the fiat money system strains under government control resulting in inflation and a gloomy economy, cryptocurrencies, which are digital currencies with decentralization baked into their core are now saving the day by giving control back to the people. It’s one of the technological wonders of the 21st century with only Crypto-famed volatility standing in the way of global adoption. Stablecoins are emerging as the preferred solution to volatility by pegging the value of cryptocurrencies to an external reference or collateral which could be fiat, crypto, algorithms, or commodities. The associated problems with the first 3 options – fiat is government-controlled, crypto is volatile and current algorithms are imperfect – leaves (assets) commodity-backed stablecoins as the only long-term solution to volatility.
The process of converting rights to commodities into a digital asset (cryptocurrency) is called tokenization and these tokenized commodities become stablecoins. With the help of blockchain technology, it’s possible to tokenize almost everything, from sports teams to real estate to precious metals and even artwork.
The case for Platinum
Gold and Silver precious metals are two of the most popular tokenized assets today due to their historic importance as universally valued assets known for their key role in the financial system as a hedge against inflation for centuries and status symbols due to their intrinsic value. The invention of tokenized gold and silver has paved the way for more investors seeking to diversify their portfolios to take advantage of the improved liquidity, enhanced accessibility, better transparency, and security that the technology offers.
Industry giants, Aurus Technologies Limited with the storied success of its AurusGold and AurusSilver tokens are fast shaping up to be the preferred experts in precious metals’ tokenization, and have now expanded its pool of tokenized assets to include Platinum. Each AurusPlatinum (AWP) equals 1 gram of redeemable audited platinum in secure vaults through Aurus partners.
Platinum is a deliberate choice for many reasons. Although lesser known than its gold and silver counterparts, platinum is as important a precious metal as any other. It is rarer and denser than gold and has wide industrial applications from electrical/electronics, arms (defense), and petroleum industries to medical, automotive, and jewelry industries and many more enabled by its unique physical and chemical properties that include softness, malleability, ductility combined with incredible resistance to tarnishing and corrosion. Studies reveal that 20% of the products purchased by modern consumers contain this noble white metal or use it in production. Investment demand for platinum has shown compelling growth through the years with the World Platinum Investment Council reporting a 26% increase in platinum demand in the first quarter of 2021 alone and return on investment sits at over 20%. There is no better time to invest in platinum than now. But how?
The best method to invest in Platinum
For years platinum investors and speculators have been restricted to investing in physical coins and bars thus increasing barriers of entry beyond the financial wherewithal of prospective investors due to associated costs of delivery, storage, liquidation, insurance, and tax. Trading, auditing, and verification difficulties are also sticking points fast making an investment in physical platinum outdated. Shares and ETF (Exchange Traded Fund) alternatives used for trading and speculation are no better either. While relatively convenient, they do not represent actual ownership of the underlying platinum assets and leave investors vulnerable to counterparty and market risks.
But with the advent of tokenization, these issues have been successfully resolved. Aurus Technologies Limited presents the best tokenization technology currently available in the market today with its AurusPlatinum (AWP) tokens arguably the most effective and cost-effective method of investing in platinum. Through its partner vaults and other third-party affiliates, Aurus has simplified investing in platinum by converting it to a digital asset on the blockchain. Anyone regardless of status can buy micro or macro units of tokenized platinum at the click of a few buttons without incurring any overhead costs due to storage, delivery, or tax. Noteworthy, AurusPlatinum represents 100% ownership of the underlying platinum assets and can be redeemed for physical LBMA-compliant platinum bars when requested by the investors. Redeemed AWP is taken out of circulation (burnt).
AurusPlatinum (AWP) will be available on the Aurus’ and partner websites (currently Aurica and Indigo), and the popular CEX.io exchange ensuring investors can trade and transfer any quantities of AWP with consummate ease. Aurus’ foray into DeFi (Decentralized Finance) will also open up a plethora of opportunities for AWP holders to stake, lend, borrow and contribute to liquidity pools using AWP. With AurusSilver and AurusGold also tradable on exchanges, investors can exploit the price differential between platinum, gold, and silver to boost their profits.
To learn more about Aurus Technologies Limited and how the Aurus ecosystem is revolutionizing the precious metals industry, visit aurus.io