How blockchain technology is fractionalizing physical assets

Transparency and security are in high demand when trading technology and precious metals. With the Finomet blockchain, Andreas Kroll aims to usher in a standard that offers exactly that. In our interview, he explains why this logistics concept is so important to him. (Source: Founders)

Mr. Kroll, you are using a special blockchain and tracking technology to make the trade of tokenized tangible assets transparent for dealers and buyers. What was your motivation for dedicating yourself to this specific topic?

My motivation is to ensure transparency and security in the trade of technology metals, precious metals, and rare earths. For more than 20 years, I have been involved with various forms of investment, particularly investments in physical goods. Therefore, I know that there have unfortunately been a few black sheep in our industry in the past. One example is the ‘Pim Gold’ case. In 2019, 10,000 investors were left empty-handed after more than three tons of gold, with a value of 150 million euros at the time, simply disappeared. I asked myself: How can something like this happen?

With our concept, I want to give control back to everyone involved in trading. The blockchain is the ideal instrument for this. By documenting the entire metal trade, from purchasing to storage to sales, using state-of-the-art technology, we are creating a new standard of security. For the first time, dealers, end customers and warehouses are communicating with each other via our platform. This has never been seen before in the industry. However, the possibilities of blockchain documentation do not end with the trading and storage of commodities, but will also ensure transparency regarding their origin in the future. This makes us fit for the new Supply Chain Act, whose requirements we have to meet…