Top 5 Gold-Backed Cryptocurrencies

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Precious metals have always been on the frontline soldier of the trade market. Now that the gold prices are reaching the stars, the crypto trade market is also thinking of launching gold baked cryptocurrency tokens. This step might help the Cryptocurrency to become stable coins.

The idea is barely a new concept. Traders and investors have no idea where to start. Let’s see the top gold Cryptocurrency token present in the market.

  1. Perth Mint Gold Token (PMGT)

The Perth Mint Gold (PMGT) is a gold Cryptocurrency token powered by the real gold blocks in the western Australia Perth Mint. The government issues the gold purity and quality, and the Mint gives the digital gold certificate via the GoldPass app.

Once the certificate is issued, those certificates can be used to back the credibility and the authenticity of the gold Cryptocurrency tokens. They can be easily exchanged on the online Crypto exchange platforms.

This token can be exchanged on various platforms. Now that you are carrying Cryptocurrency backed with gold, it is easily regulated. It is even considered that it can also compete on the platform where gold ETF and gold transfer are done.

The GoldPass apps can easily calculate the value of the PMGT gold. This apps holds all the transactional records that have been with the PMGT gold. And the best part is that PMGT gold is fully redeemable, but the liquidity is kept to minimal.

  1. DigixGlobal (DGX)

DGX based gold Cryptocurrency is provided by the Singapore based company DigixGlobal. This company offers each token value the worth of 1 gm gold. These Crypto gold tokens are mostly regulated in Singapore and Canada.

DGX token helps the owner to buy, sell, and exchange DGX gold among the digital representatives. The owner of the company came with the idea to use the gold and Cryptocurrency together foe for a new payment method that can democratize access to the gold.

However, unlike the GoldPass app, Digix Global charges a 1% fee to exchange the tokens. They charge this fee for storing the gold in the vault. There are only a few transactions that are done with DGX gold. And the total market capitalization of the trade is barely over $6 million.

  1. PAX Gold (PAXG)

Paxos is a trusted company in New York State. This company issue PAXG token that is backed by the one fine try ounce of the 400 oz London right delivery gold bar. This gold is stored in Brink’s vault.

The gold is under the custody of the Paxos, and once the token is issued, full ownership goes to the respective owner. Paxos is bound by US law to back the PAXG with mandatory gold reserves. PAXG can be traded worldwide and can be easily redeemable with the help of the London good delivery Gold Bars.

The total market capitalization of the PAXG gold Cryptocurrency token is well over $32 million.

  1. Tether Gold (XAUT)

Tether Gold is the largest issuer of the stable in the US. Tether has released its own backed Gold Cryptocurrency tokens called XAUT. Each token is equivalent to one troy fine ounces of the gold issued by the London good delivery gold bars. 

Tether gold is stored in the swiss vault, and if anybody wants to look at their gold, they can use the serial number to track their gold. Tether also allow their clients to take the gold physically if they want to redeem the gold.

Currently, XAUT has the largest market in the US, with over $50 million od market capitalizations.

  1. Meld Gold

Meld gold is an Australian start-up that has to join hands with the blockchain protocol Algorand. Now they are working together to create decentralized gold tokens. Meld wishes to create a digital platform that will help people buy and sell gold with the help of crypto gold tokenization.

The designers have designed this platform in a way where people can transact both physical and digital gold tokens.

Conclusion

The concept of buying gold and silver on the digital platform is not always new. However, there has always been an issue of credibility and authenticity. With blockchain technology,  bitcoin-price-calculation-model-becomes-a-hot-topic-in-the-world  for bitcoin evolution.

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