Digital asset manager CoinShares is putting gold on the bitcoin blockchain.
Working with wallet provider Blockchain and precious medal trader MKS (Switzerland) SA, the U.K.-based firm announced Tuesday a gold-backed network for trading tokens representing digitized physical gold, a project two years in the making.
CoinShares chairman Danny Masters said the product’s network security is based on the bitcoin state, with DGLD operating as a sidechain of the bitcoin network.
“DGLD combines the stability of the world’s most enduring asset, gold, with the security of the world’s most resilient network, Bitcoin," Masters said in a statement.
Built on blockchain firm CommerceBlock's Ocean sidechain platform, the DGLD network is notable in that it combines financial security – the bitcoin network's immutability and Swiss vault storage – while still facilitating low-friction trading, said Masters.
CoinShares says the product is available for both retail and institutional investors and will be available in over 200 countries on Blockchain’s cryptocurrency exchange, The PIT.
UPDATE (15, October 14:00 UTC): This article was updated to reflect blockchain firm CommerceBlock's participation in the project.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.