Kinesis Silver

It is a tokenized currency backed by physical silver at a 1:1 ratio, where each unit corresponds to one troy ounce of investment-grade silver (minimum 999 fineness) stored in insured and independently audited vaults. The project was launched in 2018 by the fintech company Kinesis Money to restore the function of precious metals as everyday money, combining the stability of a physical asset with the efficiency of blockchain. The token is designed for payments, savings, and income generation through the redistribution of network fees (Yield). Unlike traditional ETFs or unallocated accounts, KAG provides direct ownership of the metal and the ability for physical redemption in fixed lots.

The project is part of the Kinesis Monetary System ecosystem, which also includes the gold token KAU. The system is based on its own blockchain, the Kinesis Blockchain Network (KBN) - a fork of Stellar using the Stellar Consensus Protocol (SCP) with a Federated Byzantine Agreement (FBA) model. This ensures deterministic transaction finality in ~5.78 seconds and high throughput (up to several thousand TPS). In 2026, to expand compatibility with DeFi and centralized exchanges, an ERC-20 wrapper was issued on Ethereum (issuer - KMS Labs, Panama), fully backed by reserves of native KBN KAG.

The key difference from competitors is the built-in yield model (Holder's Yield, Velocity Yield, Minters Yield, etc.), where 15% of global transaction fees are distributed monthly to holders proportionally to their balance, accruing directly in metal. Fees are 0.22% on exchange orders and card conversions, and 0.45% on transfers between accounts. There are no subscription fees for storage - economic costs are covered by the fee-sharing design.

What Makes It Unique

KAG is the only tokenized silver asset with physical redemption from 200 ounces, transparent on-chain accounting, and regular (semi-annual) independent audits of reserves (conducted by Inspectorate International, part of Bureau Veritas). The system allows not only storing and transferring silver but also spending it via virtual cards and merchant tools, as well as using it for corporate settlements through the Multi-Asset Payroll Solution (launched in February 2026).

Features of Kinesis Silver

Technical Information

Native network: Kinesis Blockchain Network (KBN) - a private fork of Stellar using SCP with a trusted set of quorum nodes (trusted quorum). The consensus is not proof-of-stake, so staking is absent. Fee collection is implemented through a built-in Inflation operation, which accumulates funds in the Fee Pool for subsequent redistribution via the Yield engine (launched in mid-2021). The ERC-20 wrapper is written in Solidity with an upgrade proxy pattern (EIP-1967). The contract is verified on Etherscan but, as of July 2026, does not have a public audit from major firms (Trail of Bits, OpenZeppelin, CertiK, etc.).

Performance: average block time ~5.78 seconds, finality is deterministic. Claimed throughput is several thousand transactions per second, but no independent benchmarks for KBN have been published. Programmability is limited to native operations (asset issuance, multi-signature, payments) - full EVM compatibility is absent.

Tokenomics

The supply of KAG is elastic: tokens are minted upon depositing physical silver or allocated metal and burned upon physical redemption or conversion. No pre-mine, ICO, IDO, IEO, SAFT, or airdrop was conducted - distribution began in 2019 exclusively through minting. There is no fixed maximum supply. As of mid-2026, 3,820,062 KAG were in circulation. The all-time low was recorded in 2023, and the all-time high in January 2026, when the silver price rose over 140% year-on-year.

Physical redemption: minimum lot - 200 ounces (200 KAG), fee 0.45% + 100 USD + shipping/insurance. Issuance is in the form of 100-ounce bars. The procedure requires converting ERC-20 KAG to native KBN KAG via KMS Labs, and then contacting Kinesis Cayman.

Security of KAG

Physical silver reserves undergo mandatory independent audits every six months - the auditor is Inspectorate International (a Bureau Veritas company). Results are published in PDF on the Kinesis website. Storage is in professional vaults of Brink's and Loomis Zurich (London, Zurich, Singapore). On-chain transparency is provided by the explorer explorer.kinesis.money, where the circulating supply can be verified against audited balances.

The ERC-20 KAG smart contracts have not passed a public security audit - Etherscan states "No Contract Security Audit Submitted." No protocol exploitation incidents, network halts, or thefts related to KAG have been recorded for 2025-2026. The platform maintains a status page (status.kinesis.org).

Which Exchanges Trade It

List of trading platforms:

CEX exchanges: MEXC, BitMart, AscendEX (BitMax), Emirex, Kinesis Money.

DEX exchanges: Uniswap V4 (Ethereum).

According to research, trading occurs on centralized exchanges MEXC, BitMart, and AscendEX (ERC-20 version added in May 2026). On decentralized exchanges, liquidity pools for ERC-20 KAG are available via MetaMask and Trust Wallet. The main trading center is the proprietary Kinesis Exchange, supporting fiat gateways, direct minting, and yield payouts.

All-time high - $130 (Feb 1, 2026), drawdown from ATH -61.10%. All-time low - $4.36 (Feb 11, 2024).

Listings on Aggregators

Project ranking by market capitalization:

• CoinGecko rank: 167
• Finkonkurs rank: 157

Investors and Funds

The project has not attracted venture investments from major funds (a16z, Paradigm, Sequoia, Coinbase Ventures, Polychain, Pantera, Multicoin, Jump, DCG, Binance Labs, Animoca, Galaxy Digital, Hashed, Dragonfly, Variant, Standard Crypto, etc.). Financing comes from operating revenue from transaction fees and the inflow of physical metal. Any rounds with known investors, amounts, and dates are not documented.

Key Partnerships and Ecosystem

The partner network includes:

• Allocated Bullion Exchange (ABX) - an institutional platform founded in 2011 for trading physical precious metals, providing a global network of vaults and infrastructure for Kinesis. No storage fees for Kinesis users.
• Silicon Capital Global (South Africa, 2020) - integration of KAG and KAU into the SiliconEnterprise mobile wallet for transactions in Africa.
• Atlas Vaults and Atlas Brokers (Panama/Latin America, 2021) - providing storage and brokerage services for regional users, as well as opportunities to earn income on gold and silver.
• Indonesian state and private partners: PT POS (payments via POSPAY GOLD), Jakarta Futures Exchange JFX (spot contracts JFXGOLD X), Nahdlatul Ulama (sharia savings via NU Gold), Indonesian Commodity and Derivatives Exchange ICDX. These projects aim to introduce gold and silver as payment and savings instruments.
• Valaurum (formerly) - support for the production of physical gold banknotes.
• KMS Labs (Panama) - issuance of ERC-20 wrappers for KAG and KAU on Ethereum.

The ecosystem also includes Kinesis Mint (production of proprietary bars) and Kinesis Bullion Shop. No external forks, use of the token in third-party dApps, or grant programs have been recorded.

Potential

The investment prospects of KAG are determined by its unique position as digital silver with physical backing, on-chain transparency, and built-in yield. In conditions of macroeconomic instability, tokenized precious metals are considered a safe-haven asset, and industrial demand for silver (solar energy, electronics) adds a long-term price driver. Increased liquidity due to ERC-20 and listings on CEXs (MEXC, AscendEX) opens access to DeFi and institutional investors. The introduction of virtual cards and payroll solutions expands utility for corporate clients. Additionally, the absence of a spot silver ETF with similar characteristics makes KAG a niche but growing tool for portfolio diversification.

Risks [Identified by Finkonkurs AI Analytics System]

Regulatory risks: In the EU, KAG qualifies as an Asset-Referenced Token (ART) under MiCA, requiring licensing and regular audits. In the US, the CFTC classifies physical silver as a commodity, but the Holder's Yield program (15% of fees) could be interpreted as an investment contract, requiring careful jurisdictional separation. The UK's FCA oversees custodians (LBMA-accredited), while Singapore's MAS and Hong Kong's SFC consider commodity tokens under payment and custodial regimes. No lawsuits, investigations, or delistings for regulatory reasons have been recorded to date.

Technical risks: The ERC-20 wrapper has no public smart contract audit, creating potential vulnerability. Although KMS Labs holds reserves of native KAG, physical redemption requires a two-step conversion, adding operational delay and counterparty risk. The SCP consensus model with a trusted quorum is more centralized than permissionless PoS networks. Programmability is limited - no EVM, reducing composability.

Tokenomic risks: The elastic supply depends entirely on the inflow/outflow of physical metal; mass redemption could lead to a rapid reduction in liquidity. Holder concentration is high: the majority of the supply is in master wallets of the exchange and liquidity pools, which is typical for backed stablecoins.

Competitive pressure: In the tokenized silver segment, KAG competes with Silver Token (SLVT), AurusSILVER (AWS/tSILVER), Digix Silver (DSX), and LODE (AUX). Although KAG holds the largest market capitalization, liquidity and DeFi integrations lag behind gold tokens (PAXG, XAUt).

Related Individuals

• Thomas Coughlin - founder and CEO of Kinesis. Has over 25 years of experience in investment management and precious metals. Previously founded the investment firm TRAC Financial Group (Brisbane, Australia) and served as its CIO from 2007 to 2011, managing the Absolute Return Fund. In 2011, became CEO of Allocated Bullion Exchange (ABX), where he developed the MetalDesk platform for institutional trading of physical metals. From 2013 to 2016, also headed Bullion Capital, an online platform for trading physical bullion. Coughlin maintains leadership positions at Kinesis and ABX, leveraging a network of contacts among central banks, brokers, and fund managers built over a quarter century.

The Kinesis team also includes: Michael Coughlin (CFO), David Charles (General Counsel), Eric Maine (President & CSO), Jai Bifulco (CCO), Richard Melbourne (COO), Andrew Maguire (Director), Jason Noorman (CTO), Nate Fisher (CIO), Boris Shekerov (Head of Development), Nazrul Rahman (Chief Compliance Officer), and other executives listed on the official team page. Publicly available biographies of these individuals are limited to their positions; no information about previous projects, education, or public appearances beyond their association with Kinesis has been found in open sources.

Contests, Activities, and Hackathons on Our Platform

No contests, hackathons or marketing activities for this token have been published on Finkonkurs yet. New activities will appear here automatically once the team or partners launch them.

WhitePaper

The project whitepaper describes the architecture of the Kinesis Monetary System, the backing model, yield mechanisms, the consensus protocol (Stellar fork), and minting/redemption processes. The main focus is on returning precious metals to monetary circulation through blockchain. The document is likely available on the official Kinesis website. Link: Whitepaper (PDF).