Cryptocurrency custody Blockchain.com with crypto manager CoinShares and Swiss gold trading company MKS have launched a gold token (DGLD), which is based on the bitcoin blockchain, iHodl Russia reports.
The project's development lasted about two years. At the initial stage, the tokens will be backed with more than $ 20 million, stored in Switzerland.
Each DGLD token is provided with 1/10 troy ounce. CoinShares Chairman Daniel Masters says DGLD combines the stability of the longest-running asset in the world with the security of the most reliable network.
"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," Masters added.
The official press release states DGLD is not intertwined in this same legacy structure; nor, under Swiss law, is it subject to the same regulatory constraints as synthetic gold investments (e.g. exchange-traded products like ETFs).
Previously iHodl reported that the Head of the Federal Reserve of the U.S. Jerome Powell during his testimony before the U.S. Senate Banking Committee compared bitcoin (EXANTE: Bitcoin) to gold.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.