Allocated Bullion Exchange

The Allocated Bullion Exchange (ABX)—not to be confused with the Kinesis Exchange—is the wholesale marketplace for allocated precious metals that underpins the Kinesis Money system. It played a substantial role in the early development of the Kinesis platform.

ABX supports the creation of KAU and KAG, ensuring that each digital unit corresponds to an equivalent amount of physical bullion. As I understand it, some ABX institutional participants (wholesalers) also act as market makers for KAU and KAG on the Kinesis Exchange, helping to provide liquidity and contributing to relatively tight bid-ask spreads.

ABX maintains relationships with logistics and vaulting providers, forming the core vaulting network for the storage and management of the physical bullion backing the Kinesis currencies. ABX’s vault auditor, Bureau Veritas, also audits twice a year the 1:1 bullion backing of the Kinesis currencies.