CoinShares, Blockchain Launch Gold Token Network on a Bitcoin Sidechain
Digital asset manager CoinShares is putting gold on the bitcoin blockchain.
Working with wallet provider Blockchain and precious medal trader MKS (Switzerland) SA, the U.K.-based firm announced Tuesday a gold-backed network for trading tokens representing digitized physical gold, a project two years in the making.
According to CoinShares, the network launches today with more than $20 million in gold held in a Swiss vault to back up its tokens. Each DGLD token is backed by 1/10th troy ounce.
CoinShares chairman Danny Masters said the product’s network security is based on the bitcoin state, with DGLD operating as a sidechain of the bitcoin network.
“DGLD combines the stability of the world’s most enduring asset, gold, with the security of the world’s most resilient network, Bitcoin,” Masters said in a statement.
The product is notable in that it combines the best of financial security – the bitcoin network’s immutability and Swiss vault storage – while still facilitating low-friction trading, said Masters.
“You can now have the peace of mind of Swiss vaulted physical gold, with the same convenience, but not the same layers of middlemen, as owning a gold ETF.”
CoinShares says the product is available for both retail and institutional investors and will be available in over 200 countries on Blockchain’s cryptocurrency exchange, The PIT.
Gold bar image via Wikicommons
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