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Blockchain, CoinShares and MKS Launches DGLD Gold-Backed Token

  •  Denis Sinyavskiy
    📰 News

    CoinShares, Blockchain and MKS (Switzerland) formed a consortium to issue a token secured by gold and possessing a high level of security

Blockchain, CoinShares and MKS Launches DGLD Gold-Backed Token
Cover image via www.123rf.com

According to Cision PR Newswire, CoinShares, Blockchain and MKS (Switzerland) launched a unique product on the market — a DGLD token secured with gold in a Swiss bank, built on the Bitcoin network.

The uniqueness of the token lies in the fact that it has the characteristics of gold and ETF, as well as the security of the Bitcoin network. To work on the project, three companies joined the consortium:

  1. CoinShares — EU cryptocurrency manager;

  2. Blockchain — crypto wallet developer and provider of digital products.

  3. MKS — Switzerland a gold-trading company.

As reported, the work on the project took more than 2 years. At the moment, the capitalization of the DGDL token is $20 million in gold equivalent. It’s promised that each DGDL token corresponds to 1/10 troy ounce of gold, which is stored in a Swiss vault. The management of markets and storage of the token will be undertaken by the British company Globacap.

Initially, it will be possible to purchase a DGLD token only on the PIT exchange, which was recently launched by Blockchain. USA and Canada citizens and other sanctioned countries will not be able to purchase a token at the moment.

Benefits of Gold-Backed Cryptocurrencies

Gold collateral stablecoins may become a widespread practice in the future. The flimsy US financials and the risks of trade wars weaken the dollar and at the same time increase the value of the precious metal.

De Nederlandsche Bank (DNB) provided a report on its gold reserves and called the precious metal “an anchor of confidence for the financial system.” They note that if the system collapses, it’s the gold reserve that will become the foundation for its restoration.

Other cryptocurrencies secured by gold

Recently, the practice of issuing gold tokens has become quite popular. So, just recently, Paxos released its own stablecoin, secured by precious metal — Pax Gold (PAXG). And just a week ago, B2C2 launched a new derivative gold product, which is priced and settled in Bitcoin.

Will gold-backed stablecoins be as popular as dollar? Share your opinion in the comments section!

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About the author

Starting with a simple interest in cryptocurrency, over the past two years, Denis has worked in a cryptocurrency fund and become an author with an analytical bias. His engineering degree helps with the analysis of the technical part of the cryptocurrency market. As a fan of cryptocurrency, Denis believes that the blockchain technology is the future.

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Bitcoin Price Likely to Decline to $7,800: Crypto Analyst

  • Yuri Molchan
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    Bitcoin is to find support at $7,800 or recover to $8,300, an analyst writes, but either way ‘continuation of the ranging on either of the levels is going to occur’

Bitcoin Price Likely to Decline to $7,800: Crypto Analyst
Cover image via www.123rf.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Over the last few days, Bitcoin has been trading below the $8,500 area. At the moment, it has recovered to $8,258 after the recent slip below the $8,100 level.

Analysts have been bullish on BTC in the long run, however, the nearest BTC price movements are expected to be bearish.

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The crypto analyst @CryptoMichNL believes that there are two paths ahead of Bitcoin at the moment. If it fails to recover to $8,300, he says on his Twitter page, then the market should be ready for the flagship coin to drop and find support at the $7,800 or $7,300 levels.

Whichever way it goes, ‘continuation of the ranging on either of the levels is going to occur’.

The analyst tweeted this forecast twice with an hour pause.

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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