Digital Transformation of Finemetal AG with CoreLedger

The Challenge

Despite 15 years of success in the precious metals industry, Finemetal AG recognized the need to innovate and digitize their business model to capitalize on new opportunities. However, the path to digital transformation posed several challenges. As a traditional business, Finemetal faced difficulties in preparing and validating a business case for digital transformation, particularly in establishing new revenue streams.

Furthermore, Finemetal did not want to issue just another token, which might leave investors uncertain about its tangible backing. Their goal was to ensure that investors would be real owners of the gold they purchased, with the option to have their gold physically shipped. This introduced regulatory complexities that needed careful navigation.

The Search for the Right Solution

Finemetal AG faced a significant challenge in finding a partner who not only had a deep understanding of blockchain technology but also understood the needs of a traditional, non-technical business. Previous attempts to find the right partner left them unsatisfied, as many lacked the ability to bridge the gap between technology and traditional business operations.

Why CoreLedger?

Finemetal AG chose CoreLedger because of our partnership-oriented approach. It was clear from the outset that we were committed to their success, not just selling a product. Our shared vision of challenging the status quo and driving digital transformation aligned perfectly with their goals.

CoreLedger’s Solution

To kickstart the project, CoreLedger conducted several sessions with Finemetal AG to thoroughly understand their requirements. We proposed a solution that perfectly matched the technology to their needs, creating a detailed solution sketch and setting up a Proof of Concept (POC) environment to demonstrate the initial software functionality.

Understanding the regulatory complexities, we introduced Finemetal AG to our network of professionals, including experienced lawyers who provided legal clarifications. We translated these legal insights into actionable steps for software development, ensuring compliance throughout the process.

A key aspect of the solution was the introduction of Non-Fungible Assets (NFAs), a new asset class that would provide investors with a real claim to physical gold through digital assets. Additionally, custom software development was undertaken to create a compliant way to trade NFAs.

The Results

Thanks to CoreLedger’s blockchain consulting services and project management, Finemetal AG successfully transformed its business model. They now have a customized web application, a White Label Portal, which serves as an OTC marketplace for selling and redeeming gold.

To cater to digitally-savvy investors, a mobile app was developed that acts as a wallet for storing and redeeming tokens. For less digitally native investors, Finemetal introduced the Token Card—a paper wallet with a custom design in a credit card format.

On the administrative side, Finemetal AG uses the White Label Management tool along with a specialized tool for managing NFAs. These tools have streamlined operations and provided a robust platform for growth.

Conclusion