Question 1

What is USGold (USG)?

Accepted Answer

USGold (USG) is a digital asset issued on the Ethereum blockchain, designed to function as a stable-value cryptocurrency. Each USG token represents a one-ounce American Gold Eagle coin minted by the United States Mint, ensuring that its value is backed by a tangible asset. The token allows users to leverage the advantages of digital currency while maintaining the stability traditionally associated with gold.

Question 2

What is USGold (USG) used for?

Accepted Answer

USGold (USG) serves multiple purposes, primarily as a stable digital currency for global transactions and as a store of value during periods of market volatility. Unlike fiat-backed stablecoins, USG’s value is pegged to gold rather than traditional currencies. This provides an alternative for investors and traders looking for a hedge against inflation and financial instability.

Additionally, USG tokens can be redeemed for their physical counterpart at any time. Holders can exchange their tokens for American Gold Eagle coins, which are securely stored in a fully insured vault managed by the Delaware Depository. This redemption process offers liquidity and flexibility to token holders who prefer to hold physical gold.

The token is also positioned as a safe haven asset, particularly for cryptocurrency traders who need a stable alternative during market fluctuations. By being tied to a physical gold reserve, USG eliminates the risks associated with volatility seen in other digital assets.

Question 3

Who created USGold (USG)?

Accepted Answer

USGold (USG) was developed by US Gold Currency, Inc., a company headquartered in Jackson, Wyoming, with offices in Chicago, Illinois. The company is registered with the United States Treasury's Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB), under registration number 31000148296328. USGold also maintains an A+ rating from the Better Business Bureau (BBB).

The tokens are issued via a smart contract on the Ethereum blockchain, ensuring transparency and security through immutable transactions. The American Gold Eagle coins backing USG tokens are held in trust and stored in the Delaware Depository, a well-known precious metals vaulting facility. Kingdom Trust serves as the trustee, overseeing the custody of the physical gold reserves.

Question 4

How does USGold (USG) work?

Accepted Answer

Each USG token corresponds to one American Gold Eagle one-ounce coin, and its value is directly linked to the United States Mint’s published price for these coins. The token’s supply is determined by the amount of gold coins deposited into the US Gold Business Trust.

The USG ecosystem operates as follows:  
- **Issuance:** When a USG token is created, a corresponding American Gold Eagle coin is stored in the Delaware Depository.  
- **Storage & Security:** These coins remain vaulted, fully insured, and auditable in real-time.  
- **Redemption:** Token holders can redeem their USG tokens for the physical gold coins through an online process. Once requested, the coins are shipped via UPS with insurance and a required adult signature upon delivery.  
- **Trading & Stability:** The market price of USG tokens is always equal to the price of the American Gold Eagle coin set by the U.S. Mint, ensuring stability. On open-market exchanges, the value may fluctuate based on market conditions.

Question 5

Compliance & Regulation

Accepted Answer

USGold operates under the regulatory framework of the U.S. financial system. It is registered with FinCEN and complies with Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. Additionally, USGold Currency claims an exemption under Wyoming state law for money transmitter licensing (W.S. 40-22-104 (a) (vii)).