Tokenized Silver

Tokenized silver is physical silver (typically London Good Delivery bars held in audited vaults) represented one-for-one as a blockchain token. Each token entitles the holder to a specific weight of allocated silver, redeemable for physical delivery or cash settlement depending on the issuer's terms. The token settles on-chain in seconds and can move between wallets without intermediaries, while the underlying metal sits in the same kind of vault institutional investors have used for centuries.

Safety on tokenized silver rests on the same four factors RWTS scores: who holds the physical silver (Kinesis uses Brink's and Loomis allocated vaults), how often holdings are independently audited (Kinesis publishes monthly attestations), whether you can redeem the token for physical metal (yes, with KYC and a redemption threshold), and the issuer's regulatory standing. KAG is rated Tier 1 in the RWTS methodology and scores 90, joint-highest across every metal we rate: physically-backed, audited, and redeemable. Read the dimensions and not just the total, though. KAG takes a full 20 of 20 on verification and only 8 of 15 on redeemability, because the redemption right is unconditional but every route out runs through one company. See the full Trust Score breakdown on the KAG asset page below.

Most tokenized metals don't pay yield natively because the underlying physical metal produces no income; you're holding a real asset, not a debt instrument. KAG is an exception: Kinesis pays a velocity yield to KAG holders sourced from network transaction fees (currently ~0.3-0.5% APY). The yield is variable, not contractual, and depends on Kinesis network activity. If you want yield on silver-collateralized positions, the path is using KAG as collateral on a lending venue, not the token itself.

Yes. Kinesis allows physical redemption of KAG for allocated silver bars from its vault network. Redemption requires KYC and meets a minimum order threshold (currently several kilograms of silver). For holdings below the redemption threshold, you sell KAG on-chain for stablecoins or fiat-equivalent and buy physical separately, or convert to KAU (Kinesis Gold) and redeem at the lower-weight gold threshold.

iShares SLV trades only during US market hours, requires a brokerage account, and represents shares in a trust that holds silver, so you don't have a direct claim on a specific weight of allocated metal. KAG trades 24/7 on-chain, settles in seconds, can move between wallets, and represents an allocated claim on specific physical silver bars. SLV has the larger market and tighter spreads; KAG has more flexibility and accessibility from anywhere with internet. They're not strict substitutes; they serve different operational needs.

The gold-to-silver ratio is the number of ounces of silver it takes to buy one ounce of gold. The 20-year average is roughly 65:1; historically the ratio has swung from below 20:1 (silver-rich periods) to above 100:1 (gold-flight periods). Tokenized silver lets you express a view on the ratio directly: long KAG against KAU (or PAXG, XAUT) lets you trade silver-vs-gold without leaving on-chain rails. The RWTS research feed tracks ratio shifts and the macro drivers behind them.

Same six-dimension Trust Score we apply to every asset: backing (25 pts) for what physical reserves stand behind the token; verification (20 pts) for attestation and on-chain transparency; redeemability (15 pts) for how easily you can exit to physical; audit (15 pts) for smart-contract and financial audit posture; regulatory (15 pts) for issuer licensing and compliance; track record (10 pts) for time in market and incident history. KAG scores 90, level with its gold counterpart KAU and with PAX Gold at the top of the metals board. The full methodology page documents the rubric.