Gold mining rights have now been tokenized and registered on the blockchain
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(Kitco News) – While Bitcoin (BTC) is often cast in a competitive light when it comes to discussing gold, the blockchain technology underlying the top crypto has a wide range of potential use cases that could help improve the efficiency of how all financial markets operating, including precious metal markets.
A good example of how the technology can be applied to the precious metals space is demonstrated in the recent announcement by Santo Mining Corp. The company has entered into a non-fungible token (NFT) software development agreement with Vegachi Holdings SAS to develop a series of NFTs related to the fractionalization of land with gold mining rights.
The fractionalization of land in terms of gold mining rights is a new approach to using NFT technology to invest in the gold industry, but the method has previously been applied to other forms of real estate that allow more investors the opportunity to invest.
“We are excited to work on this project and be able to bridge LawTech & FinTech with digital assets, ensuring that the traditional legal world can be connected and embedded with blockchain and digital asset technology,” said Hassan Mustafa leading attorney at Law. Mustafa & Associates and legal representative of Vegachi Holdings SAS.
Santo Mining, doing business as Santo Blockchain Labs (OTC PINK:SANP), is a vertically integrated blockchain and crypto company that manages, operates and develops end-to-end Blockchain-as-a-Service (BAAS), which helps businesses with getting blockchain applications up and running.
Vegachi Holdings has 345.94 acres of land located in VegachÃ, Antioquia, Colombia, with gold mining rights issued by the Government of Antioquia. Lidar drone scans and topsoil geological tests have shown that the site recorded 18 grams of gold per metric ton.
Under the new agreement, Santo will receive a 3% transaction fee for the sale of each NFT, including a 1.5% royalty fee for each future transaction of the minted NFTs. Selling the land rights via NFTs helps create a more efficient system for tracking and managing sales, and benefits from the fact that the details of the transaction are permanently recorded on the blockchain.
“This is a great opportunity to showcase our vast NFT development experience, being able to incorporate all the legal documentation and titles of the land into an NFT that will constantly change as the historical and future value of the land and deceased holders is changing,” said Frank Yglesias, CEO of Santo. “Additionally, the transaction fee structure will ensure recurring revenue for the company.”
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.
