Blockchain Blog

Introducing DGLD: Physical Gold Secured by the Bitcoin Blockchain

For as long as we’ve had capital markets, gold has been a trusted asset for people seeking to manage global economic and political risks. However, owning gold has trade-offs. Gold purchasers either buy synthetic products like ETFs for convenience (despite the number of intermediaries they entail), or buy and store physical gold in a vault.

Today, gold can be purchased in a whole new way. One with convenience and security, without the middlemen. A way we think you’re going to like.

We’re proud to launch DGLD, a network with more than $20M in digitized gold, with our partners Coinshares, Europe’s Largest Digital Asset Manager, and MKS (Switzerland) SA, part of the world’s most trusted gold group.

DGLD is a digital asset representing allocated physical gold stored in a Swiss vault, and tokenized with a side-chain built on the Bitcoin network. In doing so, we’re empowering convenient, 24/7 purchasing of gold, with the independence of physical gold ownership.

Who is it for?

DGLD was designed for both retail and institutional gold purchasers.

Gold plays a vital role in how governments and institutions manage global economic risks. But for retail users, physical ownership of gold at any meaningful size has either remained unattainable or their money is being funneled into complex investment products.

With DGLD, global purchasers of all sizes will be able to own and secure gold just like financial giants, without the high barrier to entry of legacy options.

How does it work?

Each DGLD token is the digital equivalent of 1/10th of a troy ounce of gold, vaulted in Switzerland. Before a new token is created, gold is allocated and placed in the vault. Then, a DGLD representing that specific gold is created and sent to a DGLD wallet. This simple approach unleashes physical gold and renders it both digitally usable and physically redeemable.

The network is built on CommerceBlock’s Ocean sidechain platform, ensuring that every DGLD token redemption for physical gold, and transfer of tokens to another wallet, is cryptographically attested and validated via the Bitcoin blockchain, the world’s most secure blockchain.

How can I purchase it?

DGLD will first be available exclusively on The PIT, our super fast crypto exchange, later this quarter.

On The PIT, users have access to liquidity from a diverse, global group of leading market markers and a deep lending pool. We’ve built an expansive global banking network to facilitate deposits, withdrawals, and fiat-to-crypto trading in USD and EUR, so you can exchange fiat or crypto into gold.

It will not be available to users in the US and Canada.

Why now?

When we asked users what assets they were most interested in adding to their options across our products, digital gold has consistently been near the top of the list. Users see a gold token in a goldilocks zone with both upward price potential and the price security of stablecoins tied to global reserve currencies like US Dollars.

As hard assets have come back in vogue with central banks in countries like China, Russia, India, and Turkey buying large quantities of gold, we’re providing users with a new stamp in their passport to the future of finance.

What’s next?

We’re finishing the integration of DGLD into The PIT, and will keep our community posted when you can purchase DGLD tokens. For more details on DGLD, go to DGLD.ch.

Stay tuned for more details on DGLD here, and on our social channels @Blockchain and @BlockchainPIT.