Security and Transparency in the GLX
Stablecoins are particularly demanding in terms of transparency. However, (and ironically) the solutions available in the market today do not follow the transparency standards that the traditional financial world is used to, as explained by our CEO Helie d’Hautefort in his piece Bringing Stablecoins to the Next Level. To be fully transparent and safe, stablecoins should offer -at the very least- transparent, open banking relationships and regular access to external auditing.
As with all Globcoin products, we take transparency for the GLX stablecoin very seriously. Here’s how we’re handling it:
Transparency in currency management
✓ You can easily check the team’s credentials and background as one of the largest currency managers in the fiat world. The Globcoin team managed up to 23 Billion USD of currency mandates for institutional clients with daily reporting, providing full transparency in all our currency management activities with Foreign Exchange banks.
Transparency in currency allocation
✓ The GLX is pegged to a currency basket of 15 currencies and gold. The currency allocation in the GLX basket is disciplined and systematic according to a very comprehensive Rulebook that will be at the community disposal upon request.
✓ We will publish on our website the theoretical value of the basket in real-time against each of its components.
Transparency in Bank Accounts
✓ Subject to regulatory agreement, Reserve Currency Solutions (a Swiss company created in 2010) will issue fiat IOUs, pegged to the bank deposits of the currencies and gold, providing a transparent, auditable, and secure protocol.
✓ These deposits will be held securely at Prime Banks.
✓ The GLX related accounts are completely separate to the RCS operating account.
Transparency in Audits
✓ Communication will be done on a regular basis.
✓ Audits will be performed very frequently by a prime auditing firm.
✓ This prime auditing firm will have direct and full access to the company’s bank accounts. They will monitor and verify these daily transactions and provide Proof of Reserves / Proof of Liabilities.
Let’s make this clear: globcoin.io
