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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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Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency

  •  Denis Sinyavskiy
    📰 News

    Former US Congressman Ron Paul shares his thoughts on the possible creation of Fed’s own cryptocurrency

Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency
Cover image via www.123rf.com

Former US Congressman Ron Paul spoke on Fox Business and said that the Fed should not think about creating its own cryptocurrency.

Fed’s Crypto: To Be or Not To Be?

Rumors have been circulating for the past few months about the Fed possibly creating own cryptocurrency. It is expected that a digital coin would become a competitor to its counterparts on the market, and may even replace fiat money. President Patrick Harker, President of the Federal Reserve Bank of Philadelphia, commented on such rumors at a recent conference:

“It is inevitable. I think it is better for us to start getting our hands around it.”

However, there has not been no official follow-up by the Fed towards a crypto exchange. While proponents of this idea believe such innovation is necessary, it is expected that the exchange could stop the current delays involving US bank transfers.

What do the opponents think about the Fed's own cryptocurrency?

The idea of ​​creating the Fed's cryptocurrency has its opponents. This includes Ron Paul, who believes that the Fed is in a better position to stay away from digital coins and allow the private blockchain sector and payment platforms to resolve this discussion in real-time. What the Fed plans to do next is unclear, but the central bank may still enter the game.

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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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