A range of precious metal exchange-traded products that use blockchain to provide security and proof of ownership have been launched on the Swiss Stock Exchange.
The new physically-backed gold, silver, platinum and palladium exchange-traded commodities were launched in January by Global Palladium Fund (GPF) in conjunction with NTree International, which will market and distribute the ETCs, and issuer Ridgex.
The Swiss listing is the third of these physically backed metal ETCs, which are targeted at wealth managers, institutional investors and other professionals with total expense ratios range from 0.145% to 0.20%.
Physical custody of the metal is in Switzerland and London, and GPF said it is the first issuer to use blockchain to record information on the metal bars into distributed-ledger technology, which chief executive Alexander Stoyanov said provides “an extra layer of security and proof of ownership to all market participants, as an issuer as well as an investor”.
Stoyanov said: “The digitalization of commodities means that the source of underlying metals can be traced and the way they were produced captured, along with their ESG credentials – this is of growing importance to institutional investors.”
To burnish its ESG credentials GPF said it will source metal approved by the LBMA, the independent precious metals authority, “when possible from producers and suppliers who support the sustainable development goals of the UN 2030 agenda and other global initiatives in sustainable development and responsible mining”.