How are KAU and KAG coins created?

Purchasing KAU and KAG with USD

Kinesis coins in the KAU and KAG currency systems are minted into existence from the Kinesis Currency Exchange or KCX. Kinesis currencies are a representation of physical precious metals which back the cryptocurrency 1:1, ie 1g gold to 1 KAU and 10g Silver to 1 KAG. The existence of the physical precious metal results in the availability of the Kinesis coins themselves.

In the KCX platform a minter is able to purchase a block of the Kinesis coins using USD deposited into their trading account. These Kinesis coins are then emitted into their Kinesis Wallet simultaneously as the equivalent amount of backing precious metal is purchased.

The KCX is an online trading platform modelled on the ABX trading platform called Metaldesk with ABX’s consent. The image shown below is the user interface for the KCX trading platform which requires a deposit of USD into a trading account to enable the purchase of an available block of Kinesis KAU or KAG, and the resulting emission of the coins into the minter’s Kinesis eWallet.

See image of the trading interface in the Kinesis Currency Exchange where blocks of kinesis can be purchased.

On the purchase of a block of Kinesis, an automated process is triggered whereby the Kinesis coins are immediately transferred into the minter’s kinesis wallet and the equivalent amount of physical bullion is purchased within the Allocated Bullion Exchange (ABX).

The minter is then free to proceed with any transactions using these recently minted Kinesis coins through the use of their Kinesis wallet and the Kinesis suite of applications available.

Rosalyn Charlton

CTO, Kinesis Ltd