CoinShares, MKS, And Blockchain Roll Out DGLD Gold Token As A Bitcoin Sidechain
CoinShares, a major European digital asset investment firm is leading a group of companies in introducing a gold-backed token known as DGLD in the Bitcoin blockchain network, Cointelegraph reports.
CoinShares has teamed up with Blockchain, a key crypto wallet services provider and MKS (Switzerland) SA which is part of MKS Pamp Group to launch the token. CoinShare announced on Tuesday the launch of a gold-backed network that will allow trading of tokens that represent virtualized physical gold. According to the company, the development of the token consumed roughly two years. The new network was launched with digitized gold whose value is above $20 million.
As per CoinShare, the physical gold will be stored in vaults that are controlled by a Swiss company, PAMP in Ticino. The gold has been tokenized through Ocean Bitcoin sidechain that was created by blockchain company, CommerceBolt.
The initiative has taken advantage of immutability of Bitcoin blockchain and every token will backed by a tenth of a troy ounce of gold. The legal enterprise that came up with the token comes from Switzerland and has been a member of the country’s self-regulatory organization Financial Services Standards Association.
Danny Masters, CoinShares president explained that the combination of physical gold with Bitcoin’s security has crucial advantages. He explained that the DGLD token brings together the stability of global most sustainable asset, gold, with the security of the global most resilient network, Bitcoin. Masters explained that the project will offer convenience of buying gold for 24/7 as is the nature of digital assets.
DGLD will not be subjected to similar regulatory constraints that comes with gold-backed investments like exchange traded funds. Reportedly, the token will be governed as a category five asset in accordance to Swiss Financial Market Supervisory Authority guidelines on stablecoins. The category is a preserve of crypto assets backed by properties.
Marwan Shakarchi, MKS president, stated that given the minimal regulatory constraints, the project has the capacity to alter how gold is used on a daily basis.
According to CoinDesk, the token is now available and can be accessed by both individual and institutional investors and can be accessed in more than 200 nations on Blockchain’s cryptocurrency exchange, The PIT.