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Ethereum

Precious Metals Firm Kitco Launches Gold-Backed Tokens Built on Ethereum – Bitcoin News

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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 “kitco gold (KGLD)” “represent one true, troy ounce of fine gold,” according to Kitco.

Kitco Launches KGLD Token Backed by a Troy Ounce of .999 Gold

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.

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’s attestation process.

Precious Metals Firm Kitco Launches Gold-Backed Tokens Built on Ethereum

Because Kitco’s token is an ERC20, the firm believes the coin can be easily added to exchanges, wallet platforms, and defi ecosystems. The token’s 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.

“We’ve been looking forward to unveiling Kitco Gold, representing a digital receipt of physical gold ownership, which is digitally spendable,” Dourekas said in a statement. “Buyers 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.”

Gold Tokens Jump 30-Fold Since 2020, Kitco’s Gold Coin Will Face Competition

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

“Trust and verification are hallmarks of a well-functioning market,” Tradewind Markets CEO Michael Albanese said during Kitco’s gold-backed token launch announcement. “We are pleased to be applying best practices from other asset markets to make gold as an investment asset more secure, accessible, and cost-efficient.”

Kitco’s 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 had shown gold-backed tokens were fetching premiums.

What do you think about Kitco’s gold-backed ERC20 token launch announcement? Let us know what you think about this subject in the comments section below.

Tags in this story
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

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Blockchain

Avalanche launches upgraded bridge, prepping DApps for mainstream adoption

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Avalanche (AVAX) is replacing its months-old Avalanche-Ethereum Bridge, or AEB, with the aptly named Avalanche Bridge, or AB, according to a Medium post from the company. This newer bridge is allegedly fives times cheaper than the previous one and will act as a “growth engine” for the project’s future.

The post notes that the AB is available to developers and users right now, and all previous assets from the AEB should carry over. This upgrade is occurring alongside the network’s wallet and explorer upgrades to bring “next-generation improvements” to all of its aspects.

Related: Neon Labs deploys cross-chain Ethereum Virtual Machine on Solana

Considering 59% of existing decentralized applications, or DApps, run on Ethereum, upgrades like these are likely necessary for future interoperability. As of this writing, converting assets from one to another is expensive and time-consuming. While Ethereum’s 2.0 upgrade is meant to solve such issues, this shift is likely a number of years away.

Helping ensure the AB launch runs as smoothly as possible are the ecosystem’s “Wardens” — users that run an audited, up-to-date version of the bridge, similar to nodes in a traditional network. At launch, the Wardens will consist of Avascan, Halborn, Ava Labs, and BwareLabs.

The team behind the Avalanche Bridge, Ava Labs, asks that developers begin preparing their DApps for new standards. Speaking on the matter is Ava Labs’ CEO, Emin Gün Sirer, who said:

“The new Avalanche Bridge is a leap forward in bridging technology, but most importantly, it is a dramatic improvement in experience for users and developers across the Avalanche community. It will be a growth engine for the next phase of growth on Avalanche, and set a new standard for secure and efficient cross-chain interoperability.”

Related: A decentralized app store might lead crypto toward more centralization

While the AB is one of many potential Ethereum bridges looking to improve the network, such early technology is sometimes confusing newer cryptocurrency traders. Sirer himself is aware of these limitations, though he’s “quite bullish” on the future of blockchain. Even then, DApps such as yield farming platform DeFi Yield Protocol are looking to run on Avalanche in the near future.