Jade City, a real-world asset (RWA) platform, recently shipped its first batch of jade from its mining partner to a storage facility in Guangdong province, China. This province is known for its jade manufacturing and hosts some of the country’s largest jade trading centers. This shipment represents a crucial step toward generating revenue from jade sales and launching Jade City’s innovative RWA tokenization platform.
Jade Vault Raises $2.1 Million for Jade Mine in Kazakhstan
In July, Jade Vault, a company specializing in jadeite storage and trading, raised $2.1 million. This funding will kickstart production at a jade mine in Kazakhstan. Jade City’s platform aims to give investors access to the exclusive $50 billion jade market, which has historically been dominated by a few key players. The launch of the RWA tokenization platform is set for later in 2024.
The Cultural Significance of Jade in China
Jade holds great cultural importance in China. For over 5,000 years, people have revered jade, viewing it as a symbol of purity, moral integrity, and social status. Many consider jade even more valuable than gold due to its rarity and the intricate craftsmanship involved in creating jade artifacts. Consequently, this cultural significance fuels the growing demand for jade in China.
Jade-Backed Bonds and Tokenization
Jade City plans to issue jade-backed bonds through its platform, offering investors high yields in tokenized physical jade. Additionally, these tokens can be traded or used in a gamified environment. Investors may win valuable jade stones through virtual loot boxes. The company has secured a substantial inventory of jade, holding over 550,000 kilograms from its mining partnerships. Over the past two years, Jade City has funded production at the mine.
Supply Challenges and the Growing Demand for Jade
Myanmar has traditionally supplied most of the jade in the market. However, political instability and the depletion of its jade reserves have caused supply chain disruptions. As a result, Jade City is ready to fill the market gap. “I am glad we can soon start meeting this demand by bringing a new source of jade to the market,” said William Ralston-Saul, CEO of Jade City.
Ralston-Saul pointed out that jade’s value largely depends on its quality. Prices can range from a few dollars per kilo to millions. For example, the Cartier Jade bead necklace, which belonged to socialite Barbera Hutton, sold for $27 million at auction.
Blockchain Technology and Jade City’s Future
Jade City’s platform will reinvest profits to reward $JCT token holders through a “buy and burn” mechanism. China’s jade market, now valued at $50 billion annually, has grown tenfold since the early 2000s. Notably, it has surpassed the diamond market. Unfortunately, the jade trade has long faced issues with black-market activity and unethical mining practices. However, Jade City aims to leverage blockchain technology to bring transparency and accessibility to the market, ultimately democratizing one of the world’s most valuable gemstone trades.
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