Precious Metals Data Provider Kitco to Issue Gold-Backed Stablecoin

Kitco Gold will be backed by physical gold stored in vaults and will track the real-time market value of the yellow metal.

AccessTimeIconAug 4, 2021 at 8:44 a.m. UTC
Updated Sep 14, 2021 at 1:35 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Kitco, a Canada-based provider of news and data on gold and other precious metals, is getting into the stablecoin game.

Kitco Gold (KGLD) will be fully backed by physical gold held in Kitco's DirectReserve vaults and will track the real-time market value of the yellow metal, according to a press release shared with CoinDesk on Wednesday.

The initial trading date for KGLD hasn't been set yet, but it will be in the coming weeks, according to a spokesperson.

Hong Kong's First Digital Trust will provide regulatory compliance, know-your-customer and anti-money laundering procedures, funds processing and final authorization. Stablecoin issuer Stably will provide smart contract technology for minting and burning KGLD on the Ethereum network, and Tradewind Markets will assist in settlement.

The stablecoin attempts to combine the safe-haven nature of owning gold with the flexibility and transparency of a digital asset, Kitco said.

Kitco provides precious metals news and data used by millions to access the market prices of gold, silver, palladium and other metals. Its users will now gain access to the digital equivalent of Kitco’s depositories and vaults, which are audited to industry standards, according to Kitco's press release.

John Dourekas, a Kitco spokesman, said KGLD represents a digital receipt of physical gold ownership and provides institutional investors with a "robust" asset class.

"Investors will have a competitive alternative to traditional gold products such as gold ETFs (exchange-traded funds), with the additional benefits of real-time trading and settlement enabled by blockchain technology,” Dourekas said.

Kitco's entrance into gold-backed stablecoins follows Paxos Gold and Tether Gold, which launched their versions of the coins in 2019 and 2020 respectively. Though Kitco's endeavor comes later, market participants will likely welcome the gold bug's attempt to pry some market share from dominant stablecoin issuers, Kitco said.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about