What if the value and stability of precious metals are actually combined with the possibilities of blockchains?
Some experts compare cryptocurrencies with gold due to their limited supplies and low inflation. What if the value and stability of precious metals are actually combined with the possibilities of blockchains? Many leading financial organizations already consider this. They have announced tokenizing gold in their recent plans.
The advantages of this development are manifold. The ownership of a golden bar will be easier to prove as well as the authenticity of the asset. Cryptocurrencies based on the physical commodities will be more resistant to volatility. Public transparency may attract even those users who have previously shied away from precious metals. Therefore, a number of market giants are mixing innovation with an infinite system of values.
- JPMorgan. This bank has topped the ratings of the best financial organizations for several years. Its recently established Quorum blockchain has a great potential for expanding financial operations in a digital form. The company management has declared their interest in crypto-support for precious metals. They believe people are wanting to know where their gold or jewels come from and how they are processed. They want to avoid frauds and counterfeiting. JPMorgan can provide such tracking with the technologies they own.
- The London Bullion Market Association (LBMA). The leading wholesaler of gold and silver wants to improve the deals’ transparency. Their assets are already trusted by millions of people. Now the deals can also become flexible and digitized. Though their initiative is not yet finalized, most of the proposed solutions deal with blockchains.
- The UK Royal Mint. The ambitious plans that were once suppressed by the UK government may soon revive given the current trends. Rigid policies can alter under the pressure of modernization. The mint developed a project where 1 blockchain token corresponded to 1 gram of the stored gold. It would help potential investors to track the spot price and trade their precious metal assets on a digital platform. However, an idea to decentralize the national gold supply may still sound too revolutionary for conservatives. Therefore, the initiative is up in the air.
Other Significant Organisations
- DigixDao. This decentralized company has their own digital token DGX. It works on the Ethereum blockchain and has its value supported by certified gold refiners. The token owners are identified by asset cards protected by digital signatures. The advantage of the institution is that the shareholders actually take part in the decision process. Not only do they secure the transactions’ clarity but also determine the company’s development direction.
- Tradewind Markets. This American company has launched both silver and gold tokens. Those are backed up by many corporations involved in the precious metals industry. The ecosystem of Tradewind unites all the parties involved in precious metal trading, from producers to investors. The trade process can be traced back to gold mining due to modern digital technologies. Buyers can check information on refiners, storage, or dealers at any place any time.
- Veritaseum. Another digital offer of both gold and silver products (VERI) which are 100% redeemable. This is a new level of precious metal ownership. Digital purchase is not as easy to counterfeit as a paper certificate. Furthermore, the company acknowledges public demand to decentralize and facilitate interpersonal trade. So far, buying precious metals from individuals is very risky. Therefore, it has developed blockchain solutions for P2P transactions.
- Bitcoin Gold. Despite the criticism of its volatility, Bitcoin continued to develop cryptocurrency variations. The Gold token has changed its value as much as the ordinary Bitcoin. Many experts believe it to be unwarranted. However, it is still worth mentioning since Bitcoin remains a major crypto-market player. Their precious metals solutions may adapt to the global demand with time.
- Eidoo (EDO). This European company, headquartered in Switzerland, is working on a stablecoin alternative to its original EDO cryptocurrency. The new proposal is called ERC-20. This token is supposed to be tied to 1 gram of gold. However, Eidoo doesn’t stop at the trustworthiness of blockchain technologies. They plan to allow people to actually track their gold via constant video surveillance. To prevent this data from misuse, the new token owners must comply with certain legal requirements.
- Gold Mint. The Russian blockchain platform trades GOLD tokens backed by real gold assets. Their native cryptocurrency MNT confirms gold transactions. The participants of the trading platform range from pawn shops to individuals, and financial institutions. In the future, the company aims to develop direct P2P solutions as well.
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