Vault is working with Prime Trust as Custodian for the Gold-Backed USD-Pegged Stablecoin

This partnership will be the first time that Prime Trust will offer custodial services for precious metals. Under the partnership, Prime Trust will be the fiduciary and custodian of LBMA gold bullion that will back the USD-pegged USDVault, a stablecoin. The coin will launch in the fall of 2018.

What Role Would Vault Play?

A consortium of private equity funds, miners, and refiners focused on precious metals backs Vault. The company plans to launch the USDVault token, which is an ERC20 token that runs on Ethereum. This coin will act as ‘evidence of deposit.’ It will allow investors to redeem for a dollar or the equivalent in gold. The coin is able to remain gold-price neutral and will remain pegged to the USD via a complex gold-hedging process that will be executed by Vault’s partners.

The partnership will position the USDVault as a viable alternative to other stablecoins. It also signals the Prime Trust’s first move into the precious metals world. This will help to bridge the two asset classes, which have a unique appeal to investors looking to invest outside the usual markets.

According to the Prime Trust CEO, USDVault is an ambitious and interesting stable coin unlike anything else on which they have worked. He said that the Vault team would bring precious metals partnerships needed to pull off something, which has not been accomplished before.

The Partnership

Under the deal, Prime Trust will be a fiduciary partner and custodian for assets relating to the USDVault. After passing the KYC/AML test, buyers will transfer their funds to Prime Trust. The company will then execute the protocol they get from Vault. This will include the buying of gold bullion and hedging it with Vault partners to ensure the stability vis-à-vis the USD. A company in Switzerland will insure all storage and transport of the gold.

The Vault CEO said that via this partnership, they would to be able to give crypto investors something previously not possible. This will be a secure stablecoin, which offers the token owners a legal claim to gold. By leveraging the strengths of each company, the Vault CEO hopes to offer a gold standard for stablecoins.

About Vault

Vault is a Swiss-Canadian smart contract platform that is backed by a consortium of explorers, private equity funds, miner, and refiners that focus on precious metals. The token is issued on Vault’s platform. They have a token called USDVault, which is a stablecoin that is backed by gold bullion. This coin is also pegged to the USD in the ration of 1:1.

About Prime Trust

The Prime Trust company is an insured and chartered financial company that works as a ‘Qualified Custodian.’ It offers tokens and fiat custody, AML/KYC compliance, fund processing, and transaction technology for the digital economy. The blockchain-focused trust company, the mission of this company is to offer ICO and STO issuers the best solutions. This will allow them to seamlessly meet the need of their offerings, secondary markets, and exchanges.

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  1. It doesn’t matter what the currency is tied to. Any asset/fiat backed stablecoin (such as described above) is essentially a coupon representing the currency behind it. If the asset’s value fluctuates, then so does the pegged cryptocurrency. What we need is a non-collateralized soft peg. Something like BitBay’s dynamic peg, where the currency’s value is elegantly determined by votes of its users.


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