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Gold-backed cryptocurrencies are more or less like stablecoins, backed by physical gold. When a digital token is pegged to the current gold price value, it experiences less volatility compared to other famous cryptocurrencies. Although fiat currency-backed cryptocurrencies are seeing high adoption in the fast-evolving time, gold-backed cryptocurrencies are also making their own remarkable space among crypto investors. The concept of gold-backed cryptocurrencies emerged in 2017 when Bitcoin stood alongside the gold price. It instigated interest among investors to opt for something as precious and stable as gold. This article lists some famous gold-backed cryptocurrencies that you can buy or hold for stability.
Known for running the world's most famous stable coin, Tether has jumped into the gold-pegged cryptocurrency market to drive the next wave of disruptive investment. Tether Gold was introduced in 2020 and has risen to a total market capitalization of US$160 million. With gold reserves in the Swiss vaults, Tether Gold offers various services to exchange their crypto for physical gold or redeem it for cash. Investors can identify their gold by entering the wallet address which holds their AUXt.
An Australian tech start-up, Meta Gold, has partnered with Algorand, a blockchain protocol company to successfully establish a decentralized gold token. Meta Gold can be bought through the company's platform for gold rate. It is integrated into the current gold supply chain, which allows the seller to deliver instant gold trading and settlement via tokenization. One more leniency is that the platform offers users the to trade both virtual gold tokens and physical gold.
AABBG is one of the recent entries in the gold-pegged cryptocurrency market. Fortunately, the virtual token comes with a handful of disruptive and futuristic advantages. It follows a mine-to-token gold-backing format that ensures the existence of tokens on the digital web. It verifies physical gold assets that back the AABBD token 100% from the company's mining production segment.
Anthem Gold, developed by Anthem Vault Inc., offers tokens that are each backed by one gram of physical gold. The gold is fully insured and securely stored with a nonbank operator. The coin launched in April 2019 and is available on the Anthem Gold Edge Wallet.
Gold Coin is an ERC-20 coin developed by Digital Gold LTD. The cryptocurrency was built and is maintained by a group of volunteers who believe in the promotion of economic freedom. When holding GLC investors have access to unique features such as two-minute confirmation speeds, making it the fastest transaction of all gold-pegged tokens. GLC also offers an exclusive Goldcoin Wallet for any gold purchased and there are no transaction fees, making it extremely easy for investors to buy and hold their gold.
Perth Mint Gold Token, also known as PMGT, is one of the most-trusted gold-pegged cryptocurrencies in the market. Remarkably, PMGT is officially validated by the Australian government. Created by Western Australia's Perth Mint, the digital gold is vouched with actual gold blocks and the company also provides digital gold certificates as proof over every buying. Besides, PMGT is famous among investors for its inclusiveness to easy storage, less custody and insurance fees, and competitive and cost-effective alternative.
Launched by Pax Gold, a trusted American company, the PAXG token represents one troy ounce of a London Right Delivery bar of gold. Launched in 2019, PAXG is stored in Brink's vaults, one of the approved storage facilities of the London Bullion Market Association. The creators of the gold-pegged cryptocurrency created the token to make buying gold easily, and most importantly, digitized. By buying PAXG, the token owners hold complete ownership of the portion of gold and can also use it for trading purposes.
AurusGOLD, also known as AWG, is a gold-backed token collateralized by, and redeemable for 1 gram of 99.99% gold from LBMA certificate refineries. The sustainable digital gold token can be used as an alternative to unstable fiat currencies or as the earliest way to invest in gold. AWG is minted by gold traders that can arbitrage between the AWG and bullion gold markets, keeping the price of AWG in line with spot fold price.
DigixGlobal is a Singapore-based company that provides gold-pegged DGX tokens. The DGX token is backed on a 1:1 ratio and has a market cap of US$1,183,867. Each token represents 1 ounce of gold. The gold is stored in both Singapore and Canada, which is a unique value-added compared to other gold-backed tokens on this list; by having storage locations in two parts of the world, the risks of just having a single location are mitigated.
Cash Telex coins are linked to a diversified fund of gold, silver, diamonds, and real estate. One Cash Telex gold coin equals one gram of gold that is securely vaulted. All of the gold is fully insured and audited, as well as publicly verifiable.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
