Allowing the World to Make Use of Their Physical Assets

An Electronic Vault Warrant (eVW) is a document of title which enables the holder to monetise the value of the bullion they have stored in ABX vaults.* Issuing an eVW is a simple process as it can be done electronically through the MetalDesk platform in a few easy steps. Investors need only log in to their MetalDesk platform and use the automated drop-down functionalities to issue an eVW.

Each eVW created represents one specific bullion bar with its unique identification elements: bar number, weight, fineness, and refiner.

How it Works

Once the eVW is created through MetalDesk, the owner of the bullion bar can pledge it as collateral to their Member. The eVW makes it possible for the value of that bar to now be used as collateral to trade other asset classes offered by their Member. Whilst the pledge is in place, the owner of the bullion cannot sell or take delivery of it. When the terms of the warrant have been met, the client and Member can agree to remove the pledge and the client is once again able to trade or take delivery of their bullion.

The Advantages of eVWs

  • eVWs offer investors for the first time the ability to utilise their precious metals as good collateral for cross-margining and finance purposes.
  • The collateral optimisation afforded by eVWs offers investors additional opportunities and greater flexibility through enabling financing, leverage and cross-margining across asset classes.
  • Utilising gold as collateral is an intuitive way of using an asset with little correlation to other asset classes as collateral and therefore an innovative way of diversifying risk.

*Please note that eVWs are only applicable to 1kg and 10oz gold bars and 100oz silver bars