The Sovereign Exchange, a Canadian-based marketplace for precious metal aficionados, will soon be changing its name to Sovereign Bitcoin Exchange to reflect its proposed expansion into Bitcoin, where it will facilitate the conversion of physical gold or silver into Bitcoin.
Founded in 2012 by Vancouver entrepreneur Steven Merrill, the Exchange currently provides a marketplace where physical silver and gold investors can discover purchasing-power within a business community that extends price discounts for virtual grams of silver, known as Sovereigns. Every Sovereign is 100% secured by investment grade bullion. Sovereigns can be tendered between members or used at any time to claim physical silver or gold. The Sovereign Exchange acts as a clearinghouse for the trading activity, earning a commission on each transaction, and provides a ‘window’ for members to deposit or withdraw their bullion.
The Exchange will soon undergo an extensive re-branding so as to explain to the hard-money and cryptocurrency communities that positions can be taken in silver, gold or Bitcoin by exchanging either Sovereigns or Bitcoins in the online marketplace at agreed upon values.
For the bullion investor the Exchange will provide a mechanism to seamlessly convert physical silver or gold into Bitcoin, and for the Bitcoin investor an opportunity to find a position in a silver-anchored virtual currency, which can be used to take delivery of physical bullion, or tendered with more than 350,000 members of the commercial trade or barter exchange community across North America.
The Exchange will provide a Bitcoin-to-Sovereign exchange rate so that members will have a baseline for price discovery and transactions. With the current Bitcoin exchange-rate at approximately $880 CAD the exchange rate for one Bitcoin would be approximately 1240 Sovereigns, or for one Sovereign approximately 0.00070 BTC. The Sovereign exchange rate is currently $0.71 CAD. (Note: Rates as of Jan. 23, 2014.)
Toronto-based GreenBank Capital Inc., a company listed on the Canadian Securities Exchange (CSE: GBC), earlier this month announced that it has acquired 20% of Sovereign Exchange International Inc., the parent company of The Sovereign Exchange.
The acquisition was made by GreenBank’s subsidiary Bitcoin Angel Capital, which issued 100,000 Bitcoin Angel $1 Convertible Debentures Series B to acquire 20% of the issued and outstanding common shares of the Exchange from Merrill. The Debentures are secured on the 20% investment in the Exchange and will convert on or before December 31, 2015 into 400,000 common shares of Bitcoin Angel simultaneous with the listing of Bitcoin Angel on the CSE.
“We are delighted to be associated with GreenBank and Bitcoin Angel as we move our unique Exchange into the Bitcoin space,” said Merrill. “Since personally taking a significant position in Bitcoin in February 2013 and then helping many Exchange members and shareholders do the same, we have received numerous inquiries from hard-money investors looking to make the same transaction. The new expanded Exchange can facilitate these transactions without the silver or gold bullion ever entering the public domain. A conversion to fiat money is not required, and the commissions are paid in Sovereigns, not in cash.”
Over the next few weeks the renamed Sovereign Bitcoin Exchange intends to implement enhancements to the Exchange website at www.sovereignize.net and establish more depots across Canada for bullion investors to move their coins or bars into Exchange Treasury, making it easier and faster to charge their Sovereign accounts and bid for Bitcoin.
“This is the first angel investment made by Bitcoin Angel, and we are excited to be participating in the growth and development of the new Sovereign Bitcoin Exchange and the silver-backed Sovereign,” said Danny Wettreich, CEO of GreenBank, who has been appointed a director and Chairman of the Exchange.