Kinesis Silver

kag
Rank #137•Tokenized Assets, Ethereum Ecosystem, Real World Assets (RWA)
CoinYQ Dossier

KAG turns one ounce into a ledger entry, then asks 200 ounces to leave

The elegant line is one KAG, one ounce. The less elegant truth is where the product becomes real: pooled legal title, a proprietary Stellar fork, twice-yearly vault counts, a case-by-case redemption desk and a fee-funded yield Kinesis may change.

An ounce without a serial number

KAG does not assign a named bar to a wallet. The terms describe legal and beneficial title as a proportional interest in all allocated silver behind that currency; one native KAG measures one troy ounce of at least .999 fine bullion.

Kinesis Cayman issues native KAG. ABX coordinates the vault network, while Brinks, Loomis and other sub-bailees hold and move metal. Title language is stronger than a price peg, but exercising it still depends on those entities and their records.

The audit joins two different ledgers

The Kinesis chain records circulating KAG. Separately, Bureau Veritas inspectors count vault inventory, sample weight and fineness, and compare reports supplied through ABX with the blockchain total.

That reconciliation occurs twice a year, not with every transfer. The April 2026 page is the latest archive entry; an audit is a dated physical snapshot and does not continuously prove every custodian or legal event.

Redemption is a right with a loading dock

A holder may request physical silver, but one digital ounce is not one deliverable parcel. Current instructions require increments of 200 KAG and advertise a 0.45% fee plus $100 and shipping.

Kinesis reviews forms case by case, agrees timing and prescribed form, checks legal movement, and delivers at the holder’s expense and risk. The request becomes an accepted withdrawal only after those steps.

Kinesis’s dated technical explanation says native units return to the Emission holding account and leave circulation without being cryptographically destroyed. Current redemption terms instead use “destruction” and specify transfer to the root account. Those descriptions distinguish contractual retirement from the ledger transfer; they are not a statement about every current Stellar implementation.

Minting does not mean what Ethereum users expect

The network pre-created native asset units in a root account. “Minting KAG” is therefore an operational release of backed units into circulation after funded purchase or eligible bullion enters Kinesis Mint.

ERC-20 KAG is another layer: KMS Labs in Panama issues it against reserves of native KAG. ERC-20 holders must onboard and redeem through that issuer before reaching native KAG or physical silver.

Yield and control live with the operator

Holder Yield is not rent paid by silver. Eligible verified native-wallet balances receive a proportional slice of a KAG fee pool; Kinesis describes 15% of transaction-derived revenue and monthly payment in metal units.

The terms exclude ERC-20 KAG and unregistered wallets. They also allow Kinesis to amend, suspend or end a yield and cancel accrued amounts, so 15% describes a programme formula rather than an immutable token right.

Kinesis also runs the proprietary protocols, root/emission workflow, Mint and Exchange accounts. It can freeze platform accounts under its terms even though it says a submitted network transaction cannot be reversed.

How the project changed

  1. 2019-04-04
    Kinesis announces its Mint is live

    The April 4 publication announces that Kinesis Mint is live for creating KAU and KAG.

  2. 2020-03-17
    First physical audit

    Inspectorate completes the inaugural metals count.

  3. 2021-07-07
    Issuer reports the first minter payment

    Kinesis’s October 1 account reports that the July 7 Minter Yield rollout paid eligible users gold and silver.

  4. 2021-10-06
    Scheduled first Holder Yield payment

    The October 1 announcement schedules the first Holder Yield payment for October 6, including retroactive accrual. This source states a schedule, not an execution receipt.

  5. 2026-04-16
    ERC-20 KAG trading on Mercado Bitcoin

    Kinesis announces that KMS Labs’ Ethereum KAG is available for trading on Mercado Bitcoin. The indexed official article and author listing show April 16, 2026, while the page currently reached by redirect displays May 18, 2026. This entry retains the indexed date; the conflicting publication labels do not establish the actual listing date or the first issuance worldwide.

  6. 2026-04
    Latest audit entry

    The archive posts its April 2026 review.

Evidence and primary sources

Last evidence review: 2026-09-04

What is Kinesis Silver?

Kinesis Silver (KAG) is a digital representation of physical investment silver issued within the Kinesis Monetary System. Kinesis states that each KAG corresponds to one troy ounce of fully allocated silver bullion, with a blockchain record representing the ownership position. The silver is described as minimum .999 fine bullion stored in insured, independently audited, high-security vaults.

KAG is designed to make silver usable as both an investment asset and a payment instrument. Holders can buy, sell, track, swap, send, and spend their silver through Kinesis services rather than managing bars, vaulting, insurance, and transport themselves. The platform also supports physical delivery, subject to its terms, fees, compliance, and minimums.

Kinesis presents KAG as a way to access silver in small units: its product page says the digital balance is divisible down to 0.00001 ounces. The product is therefore aimed at users who want exposure to silver's market price and potential industrial-demand upside while retaining digital transfer and trading functionality.

KAG also exists in an Ethereum ERC-20 form. Kinesis says KMS Labs issues ERC-20 KAG, with each ERC-20 token backed 1:1 by Kinesis KAG held in reserve; Kinesis KAG itself is backed by allocated physical bullion. The ERC-20 version is distinct from the native Kinesis account/chain balance and redemption is governed by KMS Labs terms and compliance onboarding.

What problem does Kinesis Silver solve?

Conventional physical silver ownership can involve dealer markups, storage and insurance charges, illiquidity, shipping logistics, and relatively large minimum purchase sizes. Kinesis positions KAG as an attempt to make allocated silver ownership more accessible and transferable while removing recurring vaulting charges for the user.

Silver ownership also does not normally produce a cash yield, and physical bullion is cumbersome to use for everyday transfers. Kinesis addresses this by linking platform transaction revenue to yield programs and by providing digital transfers, trading, and card-based spending. These are platform features rather than a guarantee of investment return: KAG remains exposed to silver-price movements, liquidity and spread risk, operational/custody dependence, jurisdictional restrictions, and the terms of the relevant Kinesis or KMS Labs service.

How does Kinesis Silver work?

A user creates and verifies a Kinesis account, deposits funds, and purchases KAG through the Kinesis dashboard or exchange. Kinesis records the holding digitally on its blockchain and maintains corresponding allocated silver in its global vaulting network. The company says vaults are fully insured and independently audited, and that the public Kinesis Blockchain provides a live record of silver in the system.

The native KAG unit is defined by the underlying metal: one KAG represents one ounce of silver, while balances can be subdivided to 0.00001 ounces. Users can hold, sell, swap with crypto, send to other users, and spend through Kinesis payment products. Kinesis advertises global transfers in seconds and physical delivery, but availability depends on account status, jurisdiction, applicable terms, and delivery requirements.

Holder Yield is funded by activity rather than a fixed coupon on silver. The programme allocates 15% of the relevant KAG fee pool and calculates monthly payments in KAG from eligible daily native KAG balances. Required identity checks, onboarding and native-wallet registration or linking apply; ERC-20 KAG does not qualify, even in a linked wallet. The payment varies with fees and eligible balances, and Kinesis can change the programme and its eligibility rules. Spending, trading, referrals and minting may have separate reward programmes.

For Ethereum trading, KMS Labs issues ERC-20 KAG backed by reserves of native Kinesis KAG. Kinesis identifies KMS Labs S.A. as the issuer and says the native KAU/KAG are issued by Kinesis Cayman and backed by allocated bullion stored with third-party vault partners. ERC-20 redemption into native KAG-and any eventual physical redemption-requires compliance onboarding and is subject to the issuer's terms.

Key facts

  • One native KAG represents one troy ounce of minimum .999 fine silver.
  • Title is proportional across the allocated pool, not a claim to a chosen serial-numbered bar.
  • Kinesis Cayman issues native KAG on the proprietary Kinesis Stellar fork.
  • Physical redemption currently uses increments of 200 KAG plus fees and delivery costs.
  • Bureau Veritas/Inspectorate performs physical vault audits twice yearly.
  • Returned native KAG moves to root/emission accounts and leaves circulation rather than being literally burned.
  • Holder Yield allocates 15% of the KAG fee pool to eligible verified native balances.
  • Kinesis can change, suspend or terminate Yield and can freeze platform accounts under its terms.
  • ERC-20 KAG is issued by KMS Labs against native KAG reserves and has separate conversion conditions.

Official links

Official websiteWhitepaperBlock explorerX / TwitterReddit

Categories

Tokenized AssetsEthereum EcosystemReal World Assets (RWA)Tokenized SilverTokenized CommoditiesKinesis Ecosystem

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Frequently asked questions

What does one KAG represent?

According to Kinesis, one native KAG represents one ounce of fully allocated physical silver bullion. Kinesis describes the bullion as at least .999 fine.

Where is KAG silver stored?

Kinesis says the bullion is held in fully insured, independently audited, high-security vaults across its global network, using third-party vault partners.

Can KAG be converted to physical silver?

Kinesis advertises physical delivery, but conversion is not an unconditional instant redemption. It is subject to the applicable Kinesis terms, account verification, jurisdiction, fees, minimums, delivery conditions, and compliance requirements.

Does holding KAG pay interest?

Holder Yield allocates 15% of the relevant KAG fee pool and pays variable monthly rewards in KAG based on eligible daily native KAG balances. Identity checks, onboarding and native-wallet registration or linking are required. ERC-20 KAG is excluded even if its wallet is linked. This is a changeable programme, not a guaranteed coupon or interest rate.

What is the difference between native KAG and ERC-20 KAG?

Native KAG is recorded in the Kinesis system. ERC-20 KAG is issued by KMS Labs on Ethereum and is backed by reserves of native Kinesis KAG. ERC-20 redemption follows KMS Labs terms and compliance onboarding.

Is KAG risk-free because it is backed by silver?

No. Silver backing addresses the intended asset reference but does not eliminate silver-price volatility, spreads, liquidity risk, custody and issuer risk, blockchain or account risks, regulatory restrictions, or operational conditions.

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