IPMB

The Importance of Audited Proof of Reserves for Tokenized Real-World Assets

Over the last few decades, the world has seen huge innovations in the digital space; with the emergence and growth of Blockchain Technology and the development of Decentralised Finance (DeFi), a new concept has emerged: Tokenization.

First formulated in 2001 in order to protect cardholder information, the growth of cryptocurrencies and the development of the underlying technology has led to an increase in assets being tokenized.  Once illiquid, assets like real estate and precious metals can now be digitised and traded on a blockchain, enhancing liquidity and accessibility.  However, maintaining trust and confidence in said ecosystems requires ensuring the integrity and backing of tokenized assets.

The Need for Audited Proof of Reserves

An audited Proof of Reserves is essential to verify that digital tokens are backed by real-world assets as claimed by issuers, especially crucial for tokenized assets. Regular audits by reputable third-party firms demonstrate transparency and accountability, fostering trust amongst stakeholders.

Audited Proof of Reserves mitigates fraud risk by ensuring accurate asset accounting, reducing the likelihood of investment losses.  A robust auditing framework enhances market confidence, attracting a larger market with the assurance of audited, verifiable assets.

Trust and Transparency at IPMB

At International Precious Metals Bullion (IPMB), trust and transparency are paramount. Our gold reserves undergo regular third-party audits by Grant Thornton, a highly reputable international firm.  Their monthly reports detail the quantities and quality of gold reserves, ensuring accountability.

It is important to note that IPMB is detailing an audited proof of the quantity and quality of its gold reserves, as well as the procedures being followed during the audit. 

The Audit Process

Auditors meticulously scrutinise inventory records, identifying any changes in reserves.  They verify attributes through sampling techniques and engage experts for thorough validation. To confirm ownership, they review third-party documents and utilise a comprehensive documentary evidence checklist, ensuring transparency at every step.

The importance of audited proof of reserves lies in verifying the backing of digital tokens by real-world assets, fostering trust, mitigating fraud, and enhancing market confidence.

Audited Proof of Reserves plays a pivotal role in instilling trust, transparency, and confidence in the market of real-world tokenized assets.  As the tokenization of assets continues to gain traction, establishing robust auditing practices is paramount to the long-term sustainability and growth of the ecosystem.  

To read the full monthly report regarding the verification of Gold Reserves held by IPMB Bullion s.r.o. (the company), and IPMB Tokens and GeM NFTs it has in circulation, follow this link

To step it up a notch, Goldtrace360, developed by IPMB, is a proprietary product focused on providing refined pure gold from certified and responsible sources.  Scheduled for launch in Q4 2024, it aims to enhance transparency and responsibility in the gold supply chain.  The product involves sourcing gold doré from selected mines under long-term contracts, prioritising awareness of labour and environmental practices at these mines.

A key feature of Goldtrace360 is the amalgamation of blockchain technology, smart contracts and IoT devices.  These technologies are employed to maintain transparency in the supply chain and to preserve detailed records within the metadata of each GeM NFT minted by IPMB.  The integration of smart contracts and IoT devices and sensors throughout the supply chain, from mining to vault storage, provides a continuous and automated monitoring mechanism.  Goldtrace360 enables stakeholders to verify critical information about the gold, such as its origin, responsible sourcing practices, certifications, and supply chain data.  The verification process ensures that the gold meets ethical and sustainability standards.  Goldtrace360 also enforces criteria for responsible gold mining, including fair labour practices and environmental impact mitigation.

The use of blockchain technology in Goldtrace360 allows for transparency, enabling stakeholders, including consumers and regulatory bodies, to monitor and validate adherence to sustainability standards.  This aspect of the program is designed to facilitate trust and credibility in the IPMB gold supply chain.

IPMB. Real. Digital. Gold.

About IPMB

The IPMB Ecosystem offers direct access to physical gold, allowing exposure to the stability of gold and the speed and security of the blockchain through a dual-token model.  Through this innovation, IPMB is striving to change the gold industry forever.

IPMB’s mission is to provide the world access to unlimited economic freedom and opportunity, giving choice and control to accelerate a global transition to a low-cost, unified and transparent global currency.

‘From the mine to the vault, and in the cloud’, IPMB manages and operates physical gold production, sourcing, beneficiating, exporting, refining, stamping and vaulting of gold.

The IPMB Ecosystem is at the heart of the IPM Group, a group of companies spanning three continents and five countries.

To learn more about the project, visit the IPMB website or explore their communities.

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FAQ

John Vakis

CEO & Founder

John is a company entrepreneur and has traded gold for multinational banks for 25 years. He’s worked in mines, mining processes, logistics, and bullion dealing. Sovereign Funds and Multinationals have noticed his value-creating ability. He supplies metal to global refineries and advises on precious metal recovery, solving supply chain problems on all continents.

John Vakis

CEO & Founder – IPM Ltd

John is a company entrepreneur and has traded gold for multinational banks for 25 years. He’s worked in mines, mining processes, logistics, and bullion dealing. Sovereign Funds and Multinationals have noticed his value-creating ability. He supplies metal to global refineries and advises on precious metal recovery, solving supply chain problems on all continents.