- The partnership gives holders of the USDVault stablecoin a legal
claim to underlying gold bullion.
- This is the first time Prime Trust will provide custodial services
for precious metals.
the Canadian-Swiss smart contract platform, today announces its
partnership with blockchain-driven trust company Prime
Trust. Under the partnership, Prime Trust will act as fiduciary and
custodian of the LBMA gold bullion behind Vault’s
gold-backed and redeemable, 1:1 USD-pegged stablecoin, USDVault,
which will launch in Fall 2018.
Vault is backed by a consortium of precious metals focused private
equity funds, explorers, miners and refiners. The company’s upcoming
USDVault token is ERC20 compliant and issued on the Ethereum blockchain,
and acts as an “evidence of a deposit,” giving investors the ability to
redeem the tokens for $1 USD or its equivalent in gold. It is able to
remain gold-price neutral and stay pegged 1:1 to the US dollar through a
sophisticated gold hedging process to be executed by Vault’s precious
The new partnership both positions Vault’s USDVault token as a viable
alternative to market-leading fiat-backed stablecoins, and signals Prime
Trust’s first move into the world of precious metals – a move that
bridges the two asset classes that have a special appeal to investors
seeking opportunities outside conventional markets.
“USDVault is an interesting and ambitious stablecoin project unlike
anything we’ve worked on until now,” says Prime Trust CEO and Chief
Trust Officer Scott
Purcell. “The Vault team brings to the table the precious metals
operational and strategic partnerships necessary to pull off something
that has not been done before.”
Under the partnership, Prime Trust will act as the fiduciary partner and
custodian for all assets related to Vault’s USDVault token. After
passing KYC/AML compliance checks, token buyers will transfer funds to
Prime Trust, which is then responsible for executing the operation
protocol provided by the Vault Platform. This includes purchasing of
gold bullion and a specific hedge with Vault’s designated financial
partners to maintain price stability vis-a-vis the US dollar. All
transportation and storage of the gold bullion will be conducted by a
fully insured vaulting company in Switzerland.
“Together, Vault and Prime Trust will offer cryptocurrency investors
something previously unheard of – a secure, investment-worthy stablecoin
that gives token holders a legal claim to the USD equivalent worth of
gold or fiat currency,” says Vault CEO and Co-founder Ranjeet
Sodhi. “Leveraging our respective strengths, we hope to provide the
gold standard of stablecoins for institutional investors.”
is a Canadian-Swiss smart contract platform backed by a consortium of
precious metals focused private equity funds, explorers, miners, and
refiners. The first token to be issued on the Vault platform, USDVault,
is US dollar stable, backed by LBMA Gold stored in Swiss vaults, and
redeemable for gold or fiat. The token enables traders to exit market
volatility without moving into fiat or taking on commodity risk, due to
a sophisticated currency hedging program.
About Prime Trust
Trust is a chartered, insured financial institution that as a
“Qualified Custodian” provides token and FIAT custody, funds processing,
AML/KYC compliance, and transaction technology for the new digital
economy. As a blockchain-driven trust company our mission is to provide
ICO and STO issuers with the best-in-class solutions to seamlessly meet
the needs of their offerings and of exchanges and secondary markets.
Steve Marcinuk, +41 43 508 63 15