Blockchain.com, Coinshares Launch Gold-Backed Token
DGLD, a network which claims to have over $20m in investment grade gold allocated in Swiss vaults and secured using Bitcoin, launched and is now available for purchase on Blockchain.com’s cryptocurrency exchange, The PIT.
DGLD, which was created by CoinShares, Europe’s largest digital asset manager, and Blockchain.com, and MKS (Switzerland), is a digital asset or token which, at creation, represents 1/10th of a troy ounce of physical gold stored in Swiss vaults for which token holders can swap or physically redeem.
“Too often gold has been pitted against bitcoin as rivals,” says Charles McGarraugh, Head of Markets at Blockchain.com. “With DGLD we’ve thrown that question out of the window to say that the world’s two hardest assets are ideal complements for investors across the world. Market conditions are likely to increasingly favor hard assets in coming years, and I see this mutually beneficial interplay only increasing over time.”
The token is based upon the notion that people are switching from purchasing physical bullion to digital representations of gold backed by gold secured in a vault.
“If there was going to be a gold standard 2.0, DGLD is what it would look like: supranational, secure ownership of physical gold which is digitally spendable,” says Daniel Masters, Chairman of CoinShares. “That’s exactly what DGLD is – the world’s most enduring physical asset, Gold, combined with the world’s most resilient network, Bitcoin, to make gold digitally usable. After two plus years of work, we could not be more excited to see trading of digitized gold begin on the PIT.”
Security is key to an arrangement like this, but holders of DGLD still trust a counterparty.
“As Switzerland’s premier gold storage and fabrication facility we are proud to provide the physical infrastructure to support DGLD,” says Marwan Shakarchi, Chairman of MKS (Switzerland) SA. “Our worldwide network of gold clients welcome this digital innovation to a much loved asset class.”