Page 35 - Bullion World Volume 4 Issue 2 February 2024

Bullion World | Volume 4 | Issue 2 | February 2024

Exploring Gold-Backed

Cryptocurrencies:

A Comprehensive Overview

Introduction: provides a less volatile alternative to cryptocurrencies
The intersection of cryptocurrency and precious metals not pegged to stable assets. The token, stored in any
has given rise to a new breed of digital assets – gold- Ethereum wallet, can be redeemed back into physical
backed cryptocurrencies. These tokens offer investors gold or converted to fiat. Additionally, GLC is obtainable
an innovative way to gain exposure to physical gold while through ATMs and various exchanges.
leveraging the advantages of block chain technology. In
this article, we will explore five prominent gold-backed Perth Mint Gold Token (PMGT): Tokenizing the Gold
cryptocurrencies, each with its unique features and Pass certificate at a 1:1 ratio, Perth Mint Gold Token is
benefits. backed by physical gold guaranteed by the Government
of Western Australia. With no transaction, storage,
Tether Gold (XAUt): Tether Gold, an extension of the or management fees, PMGT allows users to redeem
popular Tether stable coin, provides investors with a tokens for various Perth Mint products. Publicly verifiable
direct avenue to invest in gold. Pegged to the value balances ensure transparency, making PMGT one of the
of gold rather than the US dollar, each XAUt token most affordable and influential gold-backed tokens.
represents ownership rights to specific gold bars.
Verified users can easily purchase tokens through the Conclusion:
Tether platform, and the allocated gold's details are The advent of gold-backed cryptocurrencies presents a
accessible on the website. Notably, XAUt is transferable compelling opportunity for investors seeking exposure to
between Tether wallets and exists on both Ethereum and precious metals in a digital era. Each token discussed –
TRON block chains. Tether Gold, DigixGlobal, Paxos Gold, GoldCoin, Perth
Mint Gold Token – brings its own set of features, catering
DigixGlobal (DGX): For those seeking fractional to diverse investor preferences. As the intersection
ownership of physical gold without the hassle of storage, between traditional assets and blockchain technology
DigixGlobal offers a solution. DGX allows users to invest continues to evolve, these gold-backed cryptocurrencies
in fractional tokens backed by 100-gram Swiss gold offer a promising glimpse into the future of digital finance.
bars. Tradable on cryptocurrency exchanges, DGX is Whether for fractional ownership, ease of transfer, or
stored on the Ethereum blockchain and incurs minimal instant settlement, these tokens provide a range of
fees for storage, transactions, and token conversion. options for investors looking to diversify their portfolios
However, it's essential to note that DigixGlobal is with the timeless allure of gold.
reviewing its jurisdiction due to regulatory changes.

Paxos Gold (PAXG): Issued by Paxos, Paxos Gold is an The article, "Exploring Gold-Backed Cryptocurrencies: A
ERC-20 token providing access to gold from traditional Comprehensive Overview," delves into the intersection of
markets. With a 1:1 backing ratio to physical gold, PAXG cryptocurrency and precious metals, introducing a new
offers instant settlement and the ability to trade as class of digital assets – gold-backed cryptocurrencies.
The innovative nature of these tokens lies in their ability to
futures contracts. Regulated by the NYDFS and widely
available on major exchanges, PAXG allows users to offer investors exposure to physical gold while harnessing
the advantages of blockchain technology. The exploration
redeem tokens for physical gold or major gold ETFs, focuses on five prominent gold-backed cryptocurrencies,
making it a versatile option for investors. each with distinctive features and benefits.

GoldCoin (GLC): GoldCoin positions itself as a
Disclaimer: The details and information have been
decentralized peer-to-peer cryptocurrency, emphasizing obtained from publicly available sources
transactional speed and economic freedom. With a
backing ratio of 1000 GoldCoin per ounce of gold, GLC

3535