{"id":10551,"date":"2021-08-05T19:54:06","date_gmt":"2021-08-05T19:54:06","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/precious-metals-firm-kitco-launches-gold-backed-tokens-built-on-ethereum\/"},"modified":"2021-08-05T19:54:06","modified_gmt":"2021-08-05T19:54:06","slug":"precious-metals-firm-kitco-launches-gold-backed-tokens-built-on-ethereum","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/precious-metals-firm-kitco-launches-gold-backed-tokens-built-on-ethereum\/","title":{"rendered":"Precious Metals Firm Kitco Launches Gold-Backed Tokens Built on Ethereum"},"content":{"rendered":"

On August 4, the precious metals firm Kitco Gold announced the launch of a gold-backed stablecoin which will leverage an audit process via Cohen & Company with monthly attestation reports. Kitco has partnered with Tradewind Markets, First Digital Trust, and Stably, an asset tokenization provider. The gold-backed ERC20 tokens called \u201ckitco gold (KGLD)\u201d \u201crepresent one true, troy ounce of fine gold,\u201d according to Kitco.<\/strong><\/p>\n

Kitco Launches KGLD Token Backed by a Troy Ounce of .999 Gold<\/h2>\n

In the seventies, Bart Kitner started trading gold with funds he got from a loan and managed to expand his business into a massive precious metals company from a mere $700 investment. The global precious metals (PMs) market, Kitco, is considered an authority when it comes to PMs like gold, platinum, palladium, and silver. The Montreal-based PM company also runs a popular PM-focused website that offers financial news and PM market data.<\/p>\n

Now the company is getting into cryptocurrency solutions as Kitco revealed it has partnered with the custodian First Digital Trust, the blockchain provider Tradewind Markets, and tokenization firm Stably. Kitco will launch a token called kitco gold (KGLD) which will translate into a single troy ounce of .9999 fine gold. The Kitco ERC20 tokens will be backed by gold reserves held in Directreserve vaults. The well-known CPA verification firm Cohen & Company will bolster the coin\u2019s attestation process.<\/p>\n<\/p>\n

Because Kitco\u2019s token is an ERC20, the firm believes the coin can be easily added to exchanges, wallet platforms, and defi ecosystems. The token\u2019s value is recorded in real-time using the same market value of the spot gold price. John Dourekas, the chief business development officer of Kitco Digital Metals Group, explained on Wednesday that Kitco has been anticipating the release of KGLD.<\/p>\n

\u201cWe\u2019ve been looking forward to unveiling Kitco Gold, representing a digital receipt of physical gold ownership, which is digitally spendable,\u201d Dourekas said in a statement. \u201cBuyers will be able to access a secure and reliable gold token, the most robust asset class to date. Institutional investors will have a competitive alternative to traditional gold products such as gold ETFs, with the additional benefits of real-time trading and settlement enabled by blockchain technology.\u201d<\/p>\n

<\/p>\n

Gold Tokens Jump 30-Fold Since 2020, Kitco\u2019s Gold Coin Will Face Competition<\/h2>\n

Kitco\u2019s announcement follows the recent report published by Arcane Research<\/a> which details that gold-pegged tokens have jumped in value 30x since the start of 2020. The PM dealer\u2019s move also follows the largest increase in inflationary pressure<\/a> since the 2008 financial crisis. Kitco has further indicated there\u2019s been a trend of traditional financial institutions looking for stable hedges like PMs and crypto-assets.<\/p>\n

\u201cTrust and verification are hallmarks of a well-functioning market,\u201d Tradewind Markets CEO Michael Albanese said during Kitco\u2019s gold-backed token launch announcement. \u201cWe are pleased to be applying best practices from other asset markets to make gold as an investment asset more secure, accessible, and cost-efficient.\u201d<\/p>\n

Kitco\u2019s KGLD creation will face gold token competitors as there are tokenized versions of both troy ounce measurements of gold and grams as well. KGLD will face projects like Tether Gold (XAUT), Digixglobal (DGX), PAX Gold (PAXG), Perth Mint Gold Token (PMGT), Gold Coin (GLC), and many more. In 2020, on a few occasions reports<\/a> had shown gold-backed tokens were fetching premiums<\/a>.<\/p>\n

What do you think about Kitco\u2019s gold-backed ERC20 token launch announcement? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nNews, crypto assets, Digixglobal (DGX), ERC20, Ethereum, gold, Gold Investing, Gold-backed tokens, KGLD, KGLD tokens, Kitco, Kitco Digital Metals Group, Kitco Gold, kitco gold (KGLD), PAX Gold (PAXG), PM, PMS, Precious Metals, Tether Gold (XAUT), Traditional Finance<\/p>\n","protected":false},"excerpt":{"rendered":"

On August 4, the precious metals firm Kitco Gold announced the launch of a gold-backed stablecoin which will leverage an audit process via Cohen & Company with monthly attestation reports. Kitco has partnered with Tradewind Markets, First Digital Trust, and Stably, an asset tokenization provider. The gold-backed ERC20 tokens called \u201ckitco gold (KGLD)\u201d \u201crepresent one…<\/p>\n","protected":false},"author":0,"featured_media":10552,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-10551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10551"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=10551"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10551\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/10552"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=10551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=10551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=10551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}