Precious Metals Storage in the Kinesis System
The physical gold and silver backing Kinesis gold (KAU) and silver (KAG) tokens are stored in a network of high-security, fully insured vaults spread across multiple continents. Locations include major financial hubs such as Dubai, Hong Kong, Istanbul, Vaduz (Liechtenstein), London, New York, Singapore, Sydney, Toronto, Zurich, Panama City, Batam (Indonesia), and Brisbane. This geographic distribution aims to reduce single-point risks, provide regional access for redemptions, and align with key trading centers.
Kinesis maintains these holdings through safekeeping agreements that keep legal title directly with the token holders—users remain the beneficial owners at all times. The metals sit in allocated form, as opposed to unallocated accounts (aka “promised gold”). Vault operators handle day-to-day security, while Kinesis oversees the overall framework.
Ensuring 1:1 Allocation and Ownership
Kinesis emphasizes a clear audit trail backed by multiple third-party layers to confirm that every circulating KAU (one gram of gold) and KAG (one troy ounce of silver) matches physical bullion in the vaults. The system relies on biannual independent audits to verify this 1:1 relationship, with reports made publicly available. These checks help address common concerns in asset-backed digital tokens, where mismatches between on-chain supply and physical reserves have troubled some projects in the past.
Ownership remains with the user throughout—no lending or rehypothecation occurs. This structure supports redeemability: holders can request physical delivery (minimums of 100 grams for gold or 200 ounces for silver), with logistics partners handling secure transport.
The Model Behind 0% Storage Fees
Kinesis covers vaulting costs without charging users directly by drawing from a portion of transaction fees generated across the platform. Fees apply to activities like trading on the Kinesis Exchange (0.22%), on-chain sends (0.45%), and other operations. This revenue stream funds storage, differing from many traditional bullion providers that rely on annual storage charges or price mark-ups.
The approach ties operational sustainability to network usage—higher activity supports the fee pool, which in turn covers custody expenses. Kinesis also leverages its strategic partnership with Allocated Bullion Exchange (ABX), founded in 2011 as an institutional platform for fully allocated precious metals trading. ABX provides access to its established global vaulting infrastructure, helping maintain efficiency and scale without separate storage billing.
Independent Audit Process
Audits of the inventories are conducted by Inspectorate International, a division of Bureau Veritas—a global leader in testing, inspection, and certification with a long history in commodity verification. Inspectorate specializes in physical asset checks, bringing established credibility to the process.
These independent reviews occur biannually, twice per year. The most recent available report, from October 2025, confirmed holdings of approximately 2,393,328 grams of gold and 3,729,719 ounces of silver (with additional reserves noted), aligning with circulation figures at the audit snapshot date.
What the Audits Involve
Inspectors visit the vaults in person to perform hands-on verification. They confirm the existence of the bullion, count bars or lots, check serial numbers, weights, and purity against records, and ensure proper allocation. The process spans ABX’s network, covering facilities used for Kinesis holdings. Results are compiled into detailed reports that Kinesis publishes, allowing users and observers to review the findings.
This physical inspection complements the on-chain transparency provided by the Kinesis Explorer, where circulation data (minted minus redeemed) is visible in real time. Together, the audits and blockchain records aim to provide layered assurance.
Vault and Logistics Partners
Kinesis routes its vaulting through Allocated Bullion Exchange (ABX), which maintains relationships with established operators. Primary logistics and vaulting partners include Brinks and Loomis Zurich—both well-known in secure transport and storage for precious metals, with global networks and LBMA-recognized credentials in many cases.
Additional regional support comes from facilities like Atlas Vaults in Panama (integrated since a 2021 partnership announcement) and operations in Jakarta for Indonesian users. While some sources mention Malca-Amit in broader precious metals contexts or redemption logistics, current platform materials highlight Brinks and Loomis Zurich most prominently for delivery and storage execution.
The ABX partnership extends beyond vaults to include quality assurance frameworks and institutional-grade oversight, contributing to the system’s ability to offer diversified, insured storage without user fees.
Transparency and Ongoing Developments
Kinesis publishes audit reports on its site following each biannual cycle, with the October 2025 audit marking a recent successful pass. These documents detail holdings at specific dates, vault coverage, and verification outcomes. The combination of physical audits, public reports, and blockchain visibility supports claims of full allocation and security.
As the platform continues to grow—evidenced by steady circulation increases and features like expanded deposit options—the storage model remains focused on cost efficiency through usage-based revenue and established partnerships. For users holding KAU or KAG, the setup provides a framework where physical backing is regularly checked, geographically spread, and funded without direct storage charges.