CoinShares, Blockchain Put Gold on Bitcoin Sidechain

CoinShares, a digital asset manager, is putting gold on the bitcoin blockchain. 

Collaborating with wallet provider Blockchain and precious medal trader MKS (Switzerland) SA, the U.K.- based company revealed October 15 a gold-backed network for trading tokens representing to digitized physical gold, a venture that took two years in development.

As indicated by CoinShares, the network launched October 15 with over $20 million in gold kept in a Swiss vault for its tokens’ back up. Each DGLD token is supported by 1/10th troy ounce.

Danny Masters, chairman of CoinShares, said the product’s system security depends on the bitcoin state, with DGLD implemented on a sidechain of the bitcoin framework.

“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 an announcement.

Based on blockchain company CommerceBlock‘s Ocean sidechain platform, the DGLD system is outstanding in that it consolidates financial security – the bitcoin system’s immutability and Swiss vault storage – while still implementing low-friction trading, said Masters.

He added:

“You can now have the peace of mind of Swiss vaulted physical gold, with the same convenience, but not the same layers of middlemen, as owning a gold ETF.”

CoinShares states the product is accessible for both retail and institutional investors and will be accessible in more than 200 nations on Blockchain’s digital currency exchange, The PIT.