Australians to launch gold-backed token trading platform

Since the crypto market is filled with various gold-backed tokens, a new blockchain-based platform for tokenized gold trading is set to launch in the third quarter of 2020.

The Australian startup Meld Gold recently announced the development of a gold trading platform that will provide a transparent and efficient tokenized method to sell and purchase physical gold.

The company says that in Meld Gold’s trading model, every token will be equivalent to one gram of physical gold held by the separate network companies such as Melbourne Mint. Currently, the vast majority of gold-backed tokens are supported by an amount in physical gold under the issuer’s custody.

According to Michael Cotton, the Director of Meld Gold, the platform allows to connect various members of the gold supply chain such as mints, refineries, dealers and vaults:

This brings transparency to the gold market for the first time by directly connecting buyers and sellers on a digital platform. Currently the gold market provides limited access and little visibility into its supply chain, which makes trading time-consuming, expensive and inefficient.

The platform is planned to be launched on Algorand (ALGO) blockchain protocol to connect gold suppliers, dealers, and buyers to trade their assets directly.

According to AJ Milne, the General manager of Meld Gold,  the Australian startup has already collaborated with many companies in the gold supply chain, that will start operations immediately as soon as the platform launches.

Meanwhile, the Meld Gold tokens will be fully backed by physical gold and held across the supply chain. According to the company, the fixed supply will not be provided as minting and burning will follow the demand within the traditional and digital gold markets. Furthermore, by using the blockchain Meld Gold is expected to innovate the actual gold market.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

DailyCoin Team

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