IPMB's Gold Tokenization Project Launches, GPRO Rises 10%

The International Precious Metals Bullion Group (IPMB) has introduced a pioneering approach to gold investing through its vertically integrated gold tokenization project. This initiative aims to address the challenges faced by traditional gold investment methods, which include substantial buy and sell fees, complex supply chains, and a lack of transparency in gold-backed cryptocurrencies.

IPMB's solution involves controlling key steps of the gold supply chain, from mining to tokenization, to offer favorable pricing and transparency for investors. The project includes the GoldPro Token (GPRO) and GEM NFTs, both of which are fully collateralized by gold. This approach ensures that investors can trust the reliability and value of their digital assets.

The recent report highlights the challenges in gold tokenization, such as physical gold issues, liquidity provision, and backup guarantees for digital tokens. IPMB has developed an in-house solution, Goldtrace360, to track the gold supply chain using IoT technologies. This system records every step of the gold production process on the blockchain, enhancing transparency and reducing latency.

IPMB's co-ownership of gold mining facilities in Ghana allows it to eliminate unnecessary intermediaries and achieve sustainability throughout the supply chain. This vertical integration ensures that the gold used in the tokenization process is ethically sourced and environmentally responsible, addressing concerns about unregulated mining practices.

The GEM NFTs offered by IPMB are digital promissory notes for investment-grade 24-karat gold, ranging from 1 gram to 12,500 grams. These NFTs can be obtained by staking GPRO tokens, which are 1:1 backed with gold but have a free-floating price. The staking process rewards longer commitments with higher discounts, and the conversion of GPRO to GEM NFTs results in the burning of GPRO tokens and the assignment of a unique gold coin or bar with an LBMA serial number.

GEM NFTs that are at least one year old can be redeemed for physical gold, with redemption being free of charge for NFTs of over 100 grams. If not redeemed, NFTs remain free of insurance, custody, or management fees for the first five years following the mint date. This feature provides investors with flexibility and cost savings, making gold investment more accessible and efficient.

IPMB's vertically integrated gold tokenization project represents a significant