What is DGLD?
- DGLD is a digital proof of ownership of allocated gold which is physically held in a vault in Switzerland.
- It is secured using the Bitcoin blockchain and a combination of other technologies (more below).
- DGLD is a natural, digital evolution of gold ownership format (coins, bars, now tokens...).
Concisely put, DGLD is a digital proof of ownership of 'allocated gold' physically held in a Swiss vault, backed by industry-leading partners and secured with the bitcoin blockchain.
With DGLD, individuals and investors have access to the benefits of physical gold ownership, combined with the convenience and flexibility of digital money. Our approach puts control in the hands of consumers and removes the multiple layers of middlemen traditionally associated with owning other non-physical representations of gold available on the market today.
DGLD is not intertwined in this same legacy structure; nor subject to the same regulatory constraints as synthetic gold investments (ETFs and the like) in Switzerland. It falls under category 5 of FINMA’s 'stablecoin' taxonomy - ‘linked to commodities with ownership rights.’ In other words if you hold a DGLD token, you hold the gold - no web of intermediaries and not subject to any prudential licensing requirements in Switzerland.
DGLD is only issued and linked to LBMA Gold, meaning the quality and source of the product is completely verifiable. The LBMA Good Delivery criteria is the de facto standard for gold traders around the world, and accredited custodians must meet the stringent quality criteria necessary to feature on the Good Delivery List.
On the technical front, to deliver on this design, DGLD uses a combination of secure technologies such as Ocean1 (an open-source federated blockchain and sidechain platform) and Mainstay2 (a protocol for creating a cryptographic proof of immutability).
Due to our technical approach, when you own DGLD, your allocated gold can be accessed from your digital wallet at any time, meaning you have the ability to alter your investment on your terms.If you would like to transfer your digital gold to another party that can receive DGLD, you don’t have to wait for third-parties to process your instructions - the power is at your fingertips 24/7, 365 days a year.
We digitized gold to evolve this format and eliminate most of those trade-offs associated with vaulting gold; and we chose to utilize the Bitcoin blockchain so that we could leverage the world’s most immutable ledger to secure your ownership of gold once digitized.
Said differently, we use the power (and trustless security) of the Bitcoin network to make sure only you can transfer, redeem or access your gold. This keeps your gold safely in your wallet.
As for the future of digital gold it is an exciting one. DGLD opens up possibilities for users and investors globally. From the utility of a digitized store of value in emerging markets to being leveraged in digital commerce, stay tuned - there is a lot in store...