EMURGO is a global blockchain technology company. It acts as the official commercial and venture arm of the Cardano project, which is a decentralized blockchain platform that runs the ADA cryptocurrency. EMURGO aims to foster the development of the Cardano ecosystem by investing in startups and companies that are building on the Cardano platform. The company provides solutions and services to businesses and governments in industries ranging from finance and healthcare to education and retail, helping integrate blockchain technology into their operations.
The precious metals industry involves a complex network of stakeholders, including mines, ports, refineries, and exchanges. As EMURGO points out, the intricacies of this network make precious metals an ideal candidate for asset tokenization, which could bring about significant advancements in transparency, liquidity, and stakeholder accountability.
In a blog post published earlier today, EMURGO describes precious metals as rare, naturally occurring commodities that have served as a cornerstone of economic value due to their durability, beauty, and rarity. Historically used in both industrial applications and as investment assets, these metals are pivotal in various sectors.
Tokenized real-world assets (RWAs), as EMURGO explains, are digital representations of physical assets on a blockchain, with all relevant transactions and information recorded for verification. This digital shift could provide clearer accountability and improve the efficiency of how these assets are managed and transacted.
According to EMURGO, tokenizing precious metals can offer several benefits:
- Affordability: By fragmenting a tokenized asset into smaller portions, more individuals can invest in precious metals without the need for large upfront costs.
- Security: Blockchain technology allows for transparent transaction tracking, potentially reducing human accounting errors and enhancing investment security.
- Anti-counterfeit Measures: Tokenization can help verify the authenticity of precious metals, addressing issues of counterfeiting and illegal mining practices.
- Reduced Transaction Costs: With fewer intermediaries involved, the transaction costs associated with trading precious metals could decrease, making it more efficient.
- Global Market Access: EMURGO notes that tokenization could connect stakeholders worldwide, simplifying logistics and trading processes.
EMURGO says NMKR allows the Cardano blockchain to be used to issue NFTs for various assets, including physical diamonds through its partnership with Tiamonds and e-books with Book.io, promoting true ownership and resale capabilities.
EMURGO says that 2.2 million NFTs have been issued with the help of NMKR, and transaction volumes exceed $65 million across more than 30,000 projects.
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