Table Of Contents

Kinesis Edge: Key Features of Ownership and Security in the System

Digital Documentation of Ownership via Blockchain

Kinesis gold (KAU) and silver (KAG) function as digital tokens that represent direct ownership of physical bullion. Each KAU corresponds to one gram of gold, while each KAG equals one troy ounce of silver. By leveraging blockchain technology, the platform converts traditional precious metals ownership into a digital format that is trackable and transferable.

The tokens are backed by fully allocated bullion on a strict 1:1 basis—meaning no pooling or fractional reserves. All holdings undergo regular independent audits and remain redeemable for physical metal. Storage takes place in insured vaults managed through the Allocated Bullion Exchange (ABX) network, ensuring that the physical assets remain segregated and assigned to individual holders.

Protection Against Counterparty Risk

One of the central design elements of Kinesis is the elimination of counterparty exposure that often accompanies traditional banking or brokerage arrangements for precious metals. When users acquire KAU or KAG, they gain sole legal ownership of the underlying bullion. Title to the metal never appears on the balance sheet of Kinesis or ABX, meaning neither entity claims ownership or can use the assets in their own operations.

In the event of insolvency or default by Kinesis or its partners, the bullion remains outside their reach. This structure draws from established principles in allocated storage, where the holder retains beneficial ownership at all times. The approach aims to provide the security of direct possession while allowing digital management through desktop and mobile interfaces.

Partnership with Allocated Bullion Exchange (ABX)

Kinesis operates in close collaboration with Allocated Bullion Exchange (ABX), an institutional platform established in 2011 that specializes in trading and custody of fully allocated precious metals. ABX, a publicly traded entity, brings more than a decade of experience and maintains a respected position in the global metals market.

Through this partnership, Kinesis gains access to ABX’s extensive vaulting network, logistics capabilities, and institutional-grade services. ABX also works with European Commodity Clearing (ECC), part of the Deutsche Börse Group, to support clearing and settlement standards. This infrastructure enables free storage for users, as vaulting costs are covered by a share of platform transaction fees rather than separate charges.

The arrangement positions KAU and KAG as a modern alternative to physical home storage. Users benefit from online accessibility, transactional use, and trading convenience, while the metals remain in professional, high-security facilities.

Redemption Process for Physical Bullion

Holders retain the right to redeem KAU and KAG for the actual gold or silver backing their tokens. Minimum withdrawal amounts apply—100 grams for gold and 200 ounces for silver—along with associated fees (currently 0.45% plus $100 USD and delivery costs).

Redemption requests are processed through logistics partners such as Loomis, Brinks, and Malca-Amit, which handle secure transport and delivery. Upon completion, the redeemed tokens are removed from circulation on the blockchain, reducing the total supply accordingly. This mechanism reinforces the direct link between digital tokens and physical metal.

Independent Audits of Holdings

Kinesis conducts independent audits of its bullion reserves twice per year. Inspectorate International, a specialist division of Bureau Veritas, performs these physical inspections across the ABX-managed vault network.

Auditors verify the existence, quantity, weight, purity, and allocation of gold and silver bars, cross-referencing vault contents with real-time circulation data from the Kinesis blockchain. Reports from these biannual reviews consistently confirm full 1:1 backing, with no discrepancies noted in historical audits. The process includes checks on storage conditions and quality standards to maintain confidence in the system’s integrity.

The Kinesis Explorer: On-Chain Transparency

The Kinesis Explorer (accessible at explorer.kinesis.money) provides public, real-time access to blockchain records for KAU and KAG. Every minting event—when new bullion enters the system—creates an immutable entry, while redemptions reduce supply in a visible manner. Key data points include:

• Total Coins in Circulation — Net supply, calculated as minted minus redeemed.  
• Minting Data — Transfers from the emission account to user wallets.  
• Redemption Data — Returns to the emission or root account.  
• Transaction History — Detailed logs of transfers, including asset type, amount, timestamp, and ID.  
• Ledger Information — Current synced ledger numbers, ensuring the chain remains up to date.

This open ledger allows users and auditors to validate token supply independently, complementing physical audits with continuous digital oversight.

Fully Insured and Secure Storage

All bullion is stored in fully insured, high-security vaults located in financial centers worldwide: Dubai, Hong Kong, Istanbul, Vaduz, London, New York, Singapore, Sydney, Toronto, Zurich, Panama City, Batam, and Brisbane. Insurance covers the assets against loss or damage, while the global spread mitigates regional risks.

Through ABX, Kinesis taps into established providers including Loomis Zurich and Brinks for custody and logistics. The network adheres to institutional standards, ensuring professional-grade security without user-paid storage fees.

Bullion Quality Standards

Bullion in the Kinesis system meets strict purity requirements: minimum 999.9 fineness for gold (KAU) and 999 for silver (KAG). Each bar carries refiner identifiers, serial numbers (where applicable), and stamps compliant with the ABX Quality Assurance Framework (QAF).

The QAF mandates verified audit trails, transparent storage, and regular verification. This framework applies to both tokenized holdings and physical products offered through the Kinesis Bullion store. Therefore:

• KAU is a token representing 1 gram of fine gold with a minimum purity of 9999, with serial number and identifying stamp from a refiner according to the ABX QAF. 
• KAG is a token representing 1 ounce of silver bullion with a minimum purity of 999, with the identifier of a refiner according to ABX QAF standards. It may also have a serial number. 

In-House Refinery and Bullion Store

Kinesis operates a 5,600-square-meter refinery and mint facility in Istanbul, Turkey. The site provides assaying, refining, and minting services for gold and silver, supporting both the platform’s tokenized supply and wholesale clients.

The Kinesis Bullion store offers retail investors access to competitively priced, high-purity coins and bars. All products undergo laboratory testing to confirm fineness levels (999.9+ for gold, 999+ for silver) and are sourced ethically. The facility strengthens Kinesis’s vertical integration in the precious metals sector.