CoinShares, a digital asset management company, has created a gold-backed DGLD token on the Bitcoin sidechain. It is reported by The Block .

The project was implemented by a British company together with Blockchain, a provider of cryptocurrency wallets, and MKS, a Swiss gold trading company.

The development of the token took two years and a debut coin with the provision of gold for $ 20 million in the Swiss store.

“When we started the project, we had a simple goal: to ensure that the digitized gold is filled with all the properties that the traditional ownership of a precious metal possesses, without many physical restrictions, ” said Daniel Masters, CoinShares chairman.

The token is connected to the Bitcoin blockchain through the Mainstay protocol provided by the London company CommerceBlock. According to Masters, the use of a leading cryptocurrency network makes DGLD extremely reliable compared to the existing gold tokens on the market.

Each DGLD coin is provided with 1/10 troy ounce of gold stored in Switzerland. Initially, the token will be available on the PIT cryptocurrency exchange, recently launched by Blockchain. DGLD storage support will be provided by the British company Globacap.

The consortium does not name the exact launch date of the coin, but, according to Masters, this will happen “in the coming weeks.” When launched, DGLD will not be available in the United States, Canada, or in countries under sanctions, he said.

Recall that earlier, Paxos launched a gold-linked cryptocurrency asset based on the Ethereum blockchain – Pax Gold (PAXG). At the same time, the Royal Mint of Great Britain abandoned the plan to issue a gold-backed token, not finding support from the government.

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