CoinShares, Blockchain Launch Gold Token Network on a Bitcoin Sidechain

CoinDesk reports, “Digital asset manager CoinShares is putting gold on the bitcoin blockchain.

“Working with wallet provider Blockchain and precious medal trader MKS (Switzerland) SA, the U.K.-based firm announced Tuesday a gold-backed network for trading tokens representing digitized physical gold, a project two years in the making.

“According to CoinShares, the network launches today with more than $20 million in gold held in a Swiss vault to back up its tokens. Each DGLD token is backed by 1/10th troy ounce.

“CoinShares chairman Danny Masters said the product’s network security is based on the bitcoin state, with DGLD operating as a sidechain of the bitcoin network.

“’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 a statement.

“The product is notable in that it combines the best of financial security – the bitcoin network’s immutability and Swiss vault storage – while still facilitating low-friction trading, said Masters.”

Click here to see the full story at CoinDesk.

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