Kitco Gold, a precious metals corporation, announced the introduction of a gold-backed stablecoin on August 4. The gold-backed ERC20 tokens called “kitco gold (KGLD)” “represent one true, troy ounce of fine gold,” according to Kitco. Kitco's KGLD will compete with gold-backed crypto, as there are blockchain - enabled versions of both troy ounce and gram quantities of gold. Tether Gold (XAUT), Digixglobal (DGX), PAX Gold (PAXG), Perth Mint Gold Token (PMGT), Gold Coin (GLC), and more projects will compete with KGLD.
Kitco Has A Good Plan
Kitco has formed strategic alliances with Tradewind Markets, First Digital Trust, and Stably. Because Kitco's cryptocurrency is an ERC20, the company believes it will be easy to integrate with exchanges, wallet platforms, and defi ecosystems. The value of the cryptocurrency is calculated in real time using the same market value as the spot gold price. Kitco Digital Metals Group's chief business development officer, John Dourekas, stated on Aug, 5th 2021 that Kitco has been awaiting the release of KGLD.
“We’ve been looking forward to unveiling Kitco Gold, representing a digital receipt of physical gold ownership, which is digitally spendable,” Dourekas said in a statement. “Buyers will be able to access a secure and reliable gold token, the most robust asset class to date. Institutional investors will have a competitive alternative to traditional gold products such as gold ETFs, with the additional benefits of real-time trading and settlement enabled by blockchain technology.”