Digital Gold Token to Relaunch on The Ethereum Network
On 28th November 2022, DGLD will move from a bitcoin side-chain to the public Ethereum Network. First launched in 2019, DGLD is currently held by more than 10k users across 30 countries. Every unit of DGLD gives the holder a legal claim to 1 Troy Oz of an allocated LBMA gold bar, securely stored in insured Swiss vaults. Since all the underlying gold is allocated, investors can identify precisely which bar they own at all times, via our bar mapping application. DGLD will charge zero fees on custody and transfer.
Created through a joint venture between Coinshares, Europe’s Largest Digital Asset Manager, and MKS PAMP Switzerland, part of one of the world’s most trusted gold groups, the ambition behind DGLD was to unlock gold’s potential as a monetary asset. To reach this goal, digital gold sought to unambiguously offer all the comforts of physical gold while adding the convenience of a digital asset.
Why is DGLD changing its blockchain infrastructure?
First conceived in 2009 with the advent of bitcoin, public blockchain infrastructure is evolving at an accelerating rate. Each new blockchain purports to offer enhanced features over the next, optimising for an application, sector, or architype. When Gold Token SA launched DGLD in 2019, it prioritised for security and decentralisation, offering a medium of gold ownership which did not carry the risks associated with intermediaries, regulatory interdiction or risk of default. At that time, the most secure and decentralised blockchain was the Bitcoin Network.
Fast forward to 2022 and there are many other types of blockchain infrastructure to chose from. While Bitcoin remains the stalwart of the industry, a critical mass of financial activity now takes place on the Ethereum-virtual-machine (EVM). Dubbed as a Cambrian explosion of finance, the open-source nature of these EVM applications has catalysed the development of a plethora of on-chain financial services: lending, borrowing, interest rate swaps, asset management, programmatic payments, and much more in just a few years.
Will DGLD be available on other blockchains?
The upgraded DGLD token will initially launch on the Ethereum Network. However, Gold Token SA’s proprietary tokenisation infrastructure enables us to create fully allocated, investment grade gold tokens across a number of different blockchains. As for which blockchains we will utilise, we remain informed but agnostic and are driven by investor demands. Our mission is for DGLD to be synonymous with gold, while offering greater settlement efficiency, transparency and accessibility to gold as an asset. Our ambition is for DGLD to be at the heart of a budding on-chain financial ecosystem.
The future is bright for digital gold
In our efforts to promote the utilisation of gold as a monetary asset, Gold Token SA is currently building out the ecosystem around our gold token by partnering with native protocols and applications, as well as off-chain partners. GTSA seeks to become the gateway between the physical and digital mediums of investment grade gold. As our ecosystem grows, holders will be able to collateralize loans in decentralised lending protocols, provide liquidity for institutional gold borrowers and seamlessly swap between other digital assets through an always-on liquidity pool.
With digital gold, individuals and institutions can benefit from both the security of physical and the flexibility of digital.
