Tiberius is a leading global commodities asset manager, mining operator, metal merchant trader, and Commodities Technology (ComTech) investor based in Zug, Switzerland. Their domicile of Zug has long been a center for commodities trading but has recently also gained a reputation as blockchain hub and is affectionately known as “Crypto Valley”. Tiberius’ history goes back to 2005 when they launched Europe’s first actively managed commodities fund, which eventually grew to US$ 3bn in assets under management. Commodity and financial market participation has been central to Tiberius for over a decade and a venture into the world of commodities backed cryptocurrencies is a natural extension of Tiberius’ core competencies. Tiberius Asset Management – part of the Tiberius group of companies – is regulated by FINMA (Switzerland) and BaFin (Germany).
Here’s the Tiberius Coin in a nutshell.
The purchase of the Tiberius Coin is equivalent to the purchase of physical metal. That’s it. However, because the coin shall provide special key features like transferability, and because physical delivery might be something that some buyers won’t consider, there’s quite a lot that needs to happen in the background. It took a lot of work to come up with a legal structure that reflects the following:
- The Tiberius Coin grants direct ownership
- It allows for physical delivery of metals.
- The price of the coin is not based on synthetic investments like bonds, futures, options, etc.
- The price depends on the metals prices fluctuation that are in the basket.
- The moment the coin is sold, all legal obligations need to be transferred to the third party.
- The investment in metal must not be reflected on their accounts (which is important — if Tiberius Crypto goes belly up — the metal must belong to the owner, not us).
- In order to protect the Tiberius Coin holder, all investments need to be separated from Tiberius Crypto.
To provide all of these features, the initial purchaser of the Tiberius Coin is entering into three contractual agreements:
- Purchase agreement
- Custody agreement
- Agreement to hold possession on behalf of the Tiberius Coin holder
The Purchase Agreement
The first is a purchase agreement of a basket of metals. An additional clause in the purchase agreement is the obligation to put the metals in a bonded warehouse for storage. The initial purchaser will buy the metal from Tiberius Crypto (“TIC”), which will buy metals in the market, or from other companies. The initial buyer purchases a fixed metal allocation, when the purchase price is deposited in the accounts of TIC. The warehouse receipts are issued in the form of instruments payable to the order endorsed in blank. The endorsement in blank allows the initial holder of the warehouse receipts to transfer the warehouse receipt like a bearer security. The initial holder of the warehouse receipts will be Tiberius Cypto. Each warehouse receipt represents a certain quantity of base metals and precious metals with a fixed allocation, and which are priced at the point in time the Tiberius Coin has been issued. The metal is held in allocated form at the warehouse. The warehouses are bonded warehouses. The underlying physical metals are therefore not subject to VAT.
Each Tiberius Coin is associated to a distinctive tech metal basket that will be available shortly after the main sale. These metals are:
- Technology metals – Copper & Tin
- Electric Vehicle metals – Cobalt, Nickel & Aluminium
- Stability metals – Gold & Platinum
Tiberius Coin could be suitable for both private and commercial participants since metal, as a resource, can be invested short term or long term. This gives family offices and /or high-net worth individuals an asset that holds value over time. Stability metals have been chosen to lower the cost of carry and decrease volatility. The use of gold also provides enhanced liquidity and protection against currency and inflation risk.
Participants have a few different options when they receive their tokens. They can cancel the token out (token is burned) and redeem the resources or choose to store it within the warehouse. If you are unable to receive the physical commodity then you have the option to sell the token at a higher value to another interested party. Additionally, participants may also hold these tokens for future growth and value.
Source: youtube/Tiberius Coin