Singapore Bullion Market Association

Website Sponsor

Article List

Article List

The Digital Transformation of Precious Metal Supply Chains

By Philipp Stockinger, Business Development Engineer, aXedras Group AG

As a business development engineer, PHILIPP STOCKINGER supports aXedras to establish an entirely new and innovative decentralized ecosystem on the Corda Blockchain for the global precious metal industry. He brings around eight years of experience in the global corporate banking industry. In his former role as relationship manager, he helped to ramp up the SME business in Switzerland for a global German bank.

Continue Reading
This area is for SBMA corporate members only.
To view this content, please log in.
Not yet an SBMA member?
Learn more about SBMA membership here

Swiss fintech company aXedras, with its Bullion Integrity LedgerTM, is playing a vital role in the Gold Bar Integrity (GBI) program, which was jointly launched by the LBMA and the World Gold Council earlier in 2022 to foster the integrity of gold along its supply chain, in particular in the areas of provenance and chain of custody. Following a thorough assessment phase, aXedras was selected to be part of its official pilot in Q2 and Q3 2022.

AXEDRAS DEVELOPS A TRUSTED, BLOCKCHAIN-BASED PLATFORM TO DIGITALIZE B2B PROCESSES ALONG THE VALUE CHAIN OF PRECIOUS METALS: FOCUSING ON PRODUCT AND DATA INTEGRITY.

For the pilot, aXedras onboarded more than 30 organisations that are distributed globally: 8 mines, 9 refiners, 4 carriers and 10 banks or dealers. The overarching goal was to demonstrate a successfully digitalised, end-to-end use case for the industry on a global scale. The pilot’s participants, spanning the value chain of gold, from mine via refinery to investors, demonstrated an efficient digital flow of gold, enabling for a more transparent future of the industry.

A Holistic Approach to Transforming the Value Chain of Precious Metals

As an independent software provider, aXedras has pursued its industry-aligned approach from the very beginning. Its blockchain-based solution is based on mutual data standards and harmonised taxonomy to streamline business processes and communication among business partners along the precious metals value chain. The current solution is specifically designed for gold, silver, platinum and palladium. In a nutshell, the product flows are digitalised as follows:

  • Suppliers such as mining organisations (ASM, MSM or LSM) or recycling companies can issue a digital provenance documentation (which can be conceptualised as a birth certificate) for their mined or recycled products.
  • Digital shipment processes empower the suppliers to share their provenance data (e.g., certificate of origin) with both the carrier in charge and the receiving refinery. The carrier can upload its shipment documents (e.g., AWB) to the digital shipment process.
  • Refiners give each refined product its unique Integrity Certificate, including its provenance data, whereby smart contracts ensure that provenance data is not used twice.
  • Investors benefit from the digitalised compliance records provided at the product level by suppliers and refiners.
  • Auditors can access, and assayers can contribute to the digital twin representing products or processes to increase the integrity of the products and their respective data.
  • An additional layer to improve the integrity of the products is provided through aXedras’ collaboration with security feature providers, for upstream or downstream products. Any security feature can be integrated, in other words, a one-stop solution for the industry.

Benefits of DLT/Blockchain Technology for the aXedras Ecosystem

The Bullion Integrity LedgerTM is based on the Corda-Enterprise version of R3’s Distributed Ledger Technology (DLT). Among others, the following DLT/blockchain components are used to strengthen the integrity of precious metals:

  • The Bullion Integrity LedgerTM represents a private and permissioned B2B network. Only reputable organizations may join the network and their identities are known to each other across the network.
  • Each transaction (i.e., each update of data along supply chains) is digitally signed on the DLT. This cryptographic component ensures the transparency along the supply chain.
  • The DLT-based confidentiality architecture has been on aXedras’ agenda from the very beginning. The Bullion Integrity LedgerTM is designed following a strict need-to-know principle. Each company remains in control and selectively shares data with their business partners. Sensitive business and transactional data are protected from competitors.
  • Business partners agree bilaterally or multilaterally on the data and synchronise them across their blockchain nodes. A so-called notary service ensures the uniqueness of transactions and time-stamps them respectively. There is no need for an energy-intensive consensus mechanism (e.g., proof of work) to achieve consistency and conformity on exchanged data.

Finally, each physical product is represented as a digital twin on the DLT-based platform. It carries all relevant data along the products’ lifecycle. Cryptography ensures that the data cannot be altered. For instance, whenever a shipment leads to an update of the physical location of a product, the chain of custody is being updated in real time.

How Industry Players Can Benefit

aXedras focuses on the expansion of its ecosystem by onboarding new members to the Bullion Integrity LedgerTM. As a next step, aXedras will extend its global footprint to the Asia Pacific region, with Singapore as its hub.

After having already attended the last two editions of the Asia Pacific Precious Metal Conference as panellist, aXedras looks forward to being in Singapore again in February 2023 to continue discussions with local key stakeholders. Since aXedras’ software solutions are designed for any organisation along the precious metals supply chain, their benefits are both manifold and tailor-made. The following list, which is not exhaustive, provides an overview of individual benefits for each stakeholder:

  • Suppliers such as mines, can digitalise and streamline their logistics and business processes with refiners. The integration of the assaying process – possibly conducted by an external party – means faster payment terms and lowers costs.
  • Logistics companies get access to digital bar lists and concise sets of data and documents for the shipments. The traditional exchange of data and documents via email becomes obsolete, as the exchange takes place via a streamlined and digital platform.
  • Refiners are often described as “gatekeepers of precious metals for the market”, which is duly taken into account:
    • Refiners can receive digital and structured data about their physically sourced materials by their suppliers and carriers, making it easily auditable.
    • Refiners can track the physical material throughout their production processes, which streamlines collateralisation processes.
    • Refiners can map the digital provenance information to their products, which is increasingly demanded by downstream customers and supports their aligned sustainability mandates long term.
  • Vaults benefit from digital bar lists upon of the receipt of new products. In case a duplicate is identified on the Bullion Integrity LedgerTM, for example, if there are two products registered with matching product characteristics (such as metal type, brand, weight, fineness and serial number), the solution alerts the involved vaults about the potential duplicates or even counterfeited product.
  • Banks, dealers, investors and (jewellery) manufacturers equally benefit from transparency. Increasing regulatory and consumer demands for ESG and responsible sourcing require a digital and transparent solution to ensure the integrity of physical products and to provide needed compliance data.
  • Members can digitally share their data with mandated auditors and authorities, allowing them to check and sign off compliance data more efficiently.

Connecting and Digitalising the Precious Metal Industry

aXedras has developed a novel and unique software solution for and with the precious metal industry. Throughout the GBI pilot, aXedras successfully validated its data standards, taxonomy and holistic process flows with more than 30 stakeholders of the global precious metal industry.

Visit our website www.axedras.com for more information or reach out to us if you’d like to catch up in person or virtually.

As a business development engineer, PHILIPP STOCKINGER supports aXedras to establish an entirely new and innovative decentralized ecosystem on the Corda Blockchain for the global precious metal industry. He brings around eight years of experience in the global corporate banking industry. In his former role as relationship manager, he helped to ramp up the SME business in Switzerland for a global German bank.

PREV ARTICLE
NEXT ARTICLE
BACK TO INDEX

Singapore Bullion Market Association Secretariat-Lee-Jia-Yi

Lee Jia Yi

OPERATIONS & ADMIN EXECUTIVE
Before joining SBMA, Jia Yi worked as an Admin & Reporting Officer in her previous role. She holds a Diploma in Business & Social Enterprise from Ngee Ann Polytechnic. Jia Yi is responsible for managing and maintaining physical and digital files in SBMA, supporting invoicing processes, reconciling receivables and payables, coordinating meetings and conferences. Additionally, she will provide support to the team and assist the Business Director in managing the Association’s office operations and general administrative activities.

SECRETARIAT SBMA-Emily-Oh

Emily Oh

OPERATIONS & ADMIN EXECUTIVE
Emily Oh is the Operations & Admin Executive, a seasoned professional who values teamwork and effective communication. She is skilled at adapting to new challenges and takes a proactive and resourceful approach to every task. Before joining SBMA, Emily had experience coordinating international travel arrangements and spearheading community initiatives. Her role at SBMA will be providing operational and administrative support for projects and other matters to the team.

SECRETARIAT SBMA Clara-Chang

Clara Chang

MARKETING & COMMUNICATIONS EXECUTIVE
Clara Chang joins SBMA as the Marketing & Communications Executive, enriching the team with her extensive experience in content creation, social media management, and digital marketing. Prior to joining SBMA, Clara held the position of Marketing Executive at her previous job. She holds two bachelor’s degrees from the University at Buffalo, one in International Trade and another in Geographical Information Science. Her core duties will include maintaining the SBMA website, managing the quarterly Crucible newsletter, among other responsibilities.

SBMA Committee-Photo-john-levin

Mr John Levin

Global Metals
TD Securities
John Levin is the Head of Metal Sales & Trading – APAC at the Toronto Dominion Bank’s Singapore office. Prior to this role, he devoted seven years to leading precious metal sales for the ANZ banking group in his home country, Australia. Notably, from 2009 to 2011, John played a significant role on the management committee of the London Bullion Market Association while serving as the Head of Precious Metals Sales for HSBC Global Banking and Markets in the UK.

SBMA Secretariat-Fabian-Lew

Fabian Lew

MARKETING & COMMUNICATIONS OFFICER

Fabian was a Business Development and Marketing Associate before joining SBMA. He graduated from Singapore Management University with a Bachelor’s degree in Economics.

He has joined SBMA since February, 2022.

SBMA-margare-secretariat

Margaret Wong

BUSINESS DIRECTOR

Margaret Wong, Business Director at SBMA (Singapore Bullion Market Association), brought valuable experience from her previous role at the World Gold Council (WGC). Her tenure at WGC provided her with extensive exposure to the gold community in Singapore and the broader region. This background has been instrumental in establishing strong working relationships within the industry.

Margaret’s role at SBMA encompasses a diverse range of responsibilities. She oversees office management, business support processes, finance, and administrative functions essential for the smooth operation of the team and management committee. Additionally, Margaret handles membership matters, member communications, and addresses public inquiries related to SBMA.

One of Margaret’s key responsibilities is coordinating with the Event Management Company for SBMA’s prestigious annual event, the Asia Pacific Precious Metals Conference. This flagship conference plays a crucial role in the industry, making her involvement pivotal in its success.

Described as resourceful and self-motivated, Margaret Wong brings a wealth of skills and experience to her role at SBMA, ensuring efficient operations and effective engagement within the precious metals community in Singapore and beyond.

SBMA-Albert-secretariat

Albert Cheng

Chief Executive Officer

Albert Cheng joined the World Gold Council in March 1993 as a Regional Manager, becoming Managing Director, Far East in 2003. He retired at the end of March 2015 and was subsequently named its Advisor. He has also been an International Advisor to the Shanghai Gold Exchange since 2002.

His marketing career began with Dentsu Young & Rubicam, Hong Kong in the early 80’s. He began gold marketing in July 1985 when he joined the Royal Canadian Mint as a Regional Manager for Southeast Asia.

He was appointed honorary CEO of SBMA in November 2015. He is responsible for the success and strategic development of SBMA, represents the interests of the Association, and is responsible for all the legal and regulatory aspects of the work of the Association. He is the primary contact for regulators and government bodies on bullion market development.

Ms Pawan Nawawattanasub

Ms Pawan Nawawattanasub

CEO
YLG Bullion Singapore Pte Ltd

Pawan is the CEO of YLG Bullion Singapore and founder of YLG Bullion International. She has almost 40 years of experience in the jewellery industry and established YLG in Thailand in 2003. In 2012, she brought YLG to Singapore. She sits on the Board of Directors of the Thailand Gold Traders Association, the Thailand Futures Exchange’s Arbitration Committee, and the Rotary Bangkok committee. She holds a master’s degree in Political Science.

SBMA-Shaokai-Fan

Mr Shaokai Fan

Head of Asia-Pacific (ex China) and Global Head of Central Banks
World Gold Council
Shaokai Fan is the Global Head of Central Banks at the World Gold Council, responsible for advising governments on gold matters, and enhancing the gold market through engagement, dialogue, and thought leadership. He works directly with central banks and sovereign wealth funds on investment considerations. Prior to this position, Shaokai held multiple roles at Standard Chartered Bank, including Director for Asia Strategic Initiatives and Associate-Director for Public Sector coverage. Shaokai holds a Masters of Public Administration from Columbia University and the London School of Economics, and an undergraduate degree in finance and economics from New York University.

SBMA-Committee-Alan-Liew

Mr Alan Liew

Head of Bullion & Commodities Trading
United Overseas Bank Limited
Alan is Head of Bullion and Commodities Trading for Group Trading in Global Markets, United Overseas Bank (UOB). Alan joined UOB and started the bank’s commodities trading business in 2014, previously he spent eight years in Standard Chartered Bank (SCB) trading both precious and base metals. During his tenure at SCB, he obtained the SGE gold trader licence and was part of the pioneering team for the SGE business and the FX quantitative trading team. Prior to trading, he worked for Monetary Authority of Singapore in the Financial Risk Management Division. He holds a BSc (Hon) in Computer Science at National University of Singapore and a MSc in Financial Engineering at Nanyang Technological University.

SBMA-Committee-Nikos

Mr Nikos Kavalis

Managing Director
Metals Focus Singapore Pte Ltd
Nikos Kavalis is a founding partner of Metals Focus. He has over 20 years of experience in precious metals, having previously worked for the Royal Bank of Scotland and GFMS. Since September 2019, Nikos has been based in Singapore, where he also runs the local subsidiary of Metals Focus.

SBMA-Committee-khun nuttapong

Mr Nuttapong Hirunyasiri

CEO
MTS Gold Global Trading Pte Ltd
Nuttapong Hirunyasiri is the CEO of MTS Gold Group, one of Thailand’s top 10 companies and top 3 bullion companies. He started MTS Gold Group’s first overseas office in Singapore and has been expanding the group business internationally. He focuses on product development and innovation for gold investment, with the aim of being a leader in providing the full suite of gold investment services in the ASEAN region.

SBMA Committee-Photo-Raman-Walia

Mr Raman Walia

Executive Director, Head of Commodities Sales – APAC
JP Morgan Chase Bank N.A.

Raman is Executive Director and Head of Commodities Sales, APAC, for J.P. Morgan. He joined JPMorgan in 2008 in New York, moved to Singapore in 2011, and helped expand the precious metals business in the region. Raman has an MBA from Cornell University, and likes to travel in his spare time.

SBMA Committee-Photo-Andrew-Clarke

Mr Andrew Clarke

Head of Brink’s Global Services
Brink’s Global Services Pte Ltd

Andrew Clarke is the Head of BGS (Brink’s Global Services) for Singapore, Indonesia, Malaysia and Brunei. He has held various leadership positions throughout his career in secure logistics and risk management with Brink’s, which started in Hong Kong in 2010. Andrew relocated to Singapore in 2018 to expand the precious metals line of business along with Brink’s portfolio of services and industries.

SBMA Committee-Photo-Kazuya-Naoki

Mr Kazuya Naoki

Head of Metals, Asia
ICBC Standard Bank Plc, Singapore Branch

Kazuya (Kaz) Naoki is the Head of Metals, Asia of ICBC Standard Bank in Singapore and is responsible for the precious & base metals sales and trading in the region. He joined Standard Bank Plc Tokyo Branch in 2008 and was relocated to its Singapore Branch in 2013 whose controlling stake was acquired by the Industrial and Commercial Bank of China in 2015. Prior to joining Standard Bank, Kaz spent 11 years focusing on commodity trading and risk management with Mitsui & Co in Tokyo, Sydney and London. Kaz has been serving on the SBMA Management Committee since 2016.

SBMA Committee-Photo-Vinh-Nguyen

Mr Vinh Nguyen

Head of Precious Metals, Asia
StoneX APAC Pte Ltd

Vinh Nguyen joined StoneX Group in Singapore at the beginning of 2008 and responsible for its APAC precious metals activities since 2019 until now.

SBMA Committee-KL-Yap

Mr KL Yap

General Manager, Singapore Refining Business Unit
Metalor Technologies (Singapore) Pte Ltd
KL YAP is the General Manager of Metalor Technologies (Singapore) Pte Ltd’s Singapore Refining Business Unit. He joined Metalor in 2013, initially in Refining Sales. In 2014, he became Refining Business Unit Manager, leading the development of a new precious metal refinery. KL was Vice Chairman of SBMA from 2017 to 2021, now serving as Chairman. With a degree in business commerce, finance, and marketing, he brings prior experience from refinery and heavy industries.