Emergent Technology (EmTech), a finance and technology company, announced on Monday (Jan. 21) that its blockchain-based gold supply chain ecosystem (RG SCA) has received Shariah-compliance certification, according to a press release.
The system automates the tracking of gold from the mine to the refinery, and then to the vault. It also tracks G-Coin tokens, which are digital title certificates of the gold. The Shariah Supervisory Board of Amanie Advisors found that the system exceeded Shariah requirements on ethical trading and transparency.
“The usage of blockchain in delivering the solution to create a transparent and ethical ecosystem is timely. Shariah principles demand transparency, traceability and accountability,” said Datuk Dr. Mohd Daud Bakar, founder of Amanie Advisors. “The Shariah-compliant endorsement of the RG SCA and the issuance of G-Coin tokens will give confidence to Islamic investors and gold players to participate in this initiative and play bigger roles to create a more ethical and conflict-free ecosystem.”
Matthew Keen, EmTech’s managing director of responsible gold trading DMCC, said the certification will aid the community of gold buyers that it serves.
“This Shariah endorsement opens the Islamic community to an unprecedented asset class. For the first time, over one billion Muslims can buy Shariah-compliant, responsibly sourced gold with provenance assured,” Keen said. “Gold miners and refiners who use the RG SCA demonstrate their commitment to ethical sourcing and traceability. This Shariah accreditation will reward the gold industry with new sources of demand, as well as new funding opportunities from the Islamic community.”
In the process, a supply chain participant scans cryptographic seals to gold to create provenance and custody records. The data is then recorded instantaneously on EmTech’s blockchain. Once a kilo bar of gold is made, EmTech’s imaging technology uses AI to validate the bar’s authenticity. Also, a portion of the tracked gold is digitized into G-Coin tokens, which can be used for a variety of purposes, including investment, wealth transfer or payments. The RG SCA is available for licensing, the company said, and G-Coins will be available later in the year.
“G-Coin tokens combine the best attributes of gold as a diversifier, risk management tool and long-term preserver of wealth with state-of-the-art technology built for financial markets,” Keen said. “We welcome the opportunity to bring G-Coin tokens to the Islamic finance community, with confidence that any G-Coin token transaction will be a decentralized and instantaneous investment in physical Shariah-compliant gold.”