A consortium of companies, including CoinShares and Blockchain, launched the Gold-backed Digital Gold (DGLD) token on the Bitcoin sidechain. Tokens are provided with $ 20 million worth of physical gold.
After two years of development, DGLD was launched
October 15, 2019. The assets of the network are secured by gold bars and coins worth about $ 20 million, located in the vault of the Swiss custodian PAMP. The ingots were tokenized on the sidecoin Bitcoin Ocean, a network developed by the blockchain company CommerceBlock.
The CommerceBlock sidechain is created on the same code base as the Blockstream Liquid network. At the same time, Liquid is a “federal” sidechain – this concept implies that there is a group of persons acting as an intermediary between the network and the parent blockchain of Bitcoin. However, CommerceBlock claims to have eliminated the need for this second level of trust.
This allows asset keepers to issue tokens in the managed sidechains that they control, and these networks can then connect to the Bitcoin blockchain via the MainStay protocol.
CommerceBlock.
“The immutability of the side chain via the MainStay protocol is provided by constant confirmation of the latest Ocean block hash in the Bitcoin network and by linking the input of each subsequent confirmation with the previous one, which allows you to track“ StayChain ”confirmations down to the zero block and prove that there is only one valid block chain, ”says CommerceBlock.
CoinShares believes that through the use of Ocean and MainStay, the company managed to combine the traditional value of gold and the best qualities of Bitcoin.
“DGLD combines the stability of the world’s longest-lasting asset, gold, with the security of the world’s most sustainable blockchain, Bitcoin,” said CoinShares President Danny Masters.
The cost of each DGLD token will be equal to the price of one tenth of an ounce of gold stored in the PAMP. According to the DGLD consortium, the token is not subject to the same regulatory restrictions as traditional investment products based on gold.
He is classified
as a “fifth category” product in the stablecoin taxonomy of the Swiss Financial Market Supervisory Agency (FINMA). This category is reserved for cryptocurrency projects related to exchange goods with property rights.
A DGLD press release notes that institutional and retail investors will be able to first purchase the token exclusively through the Blockchain.com cryptocurrency exchange – The PIT. Although no specific launch date has been announced, the consortium says DGLD will be available in the fourth quarter of 2019.
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