May 13, 2019 (China Knowledge) - Hong Kong’s local gold exchange will be supporting its new digital gold trading platform Goldzip with an initial USD 300 million worth of gold in minimum reserve. This minimum reserve will also be guaranteed by members of the Chinese Gold & Silver Exchange (CGSE) for three years.
Participating members of Goldzip are currently in audit for their physical gold inventory to verify that each Goldzip token is backed by 1 gram of gold before having the physical gold moved into a vault at the exchange.
Goldzip aims to make transfers and payments with gold easier though the use of asset-backed tokens powered by blockchain ledger technology, creating an ecosystem through which investors can trade Goldzip over cryptocurrency exchanges, over-the-counter (OTC) markets and gold retailers.
At the moment, Goldzip has managed to onboard 30,000 merchants across Southeast Asia and members can sell Goldzip tokens to the public through retail outlets. In addition, Goldzip will also be soon partnering up with global payment networks such as Visa, Mastercard and UnionPay.
This is not the first-time gold has been tokenized via blockchain technology with Singapore-based Digix Global having also issued similar gold-backed DGX tokens last year.
According to CGSE director Calvin Ng, Goldzip should track the spot price of gold closely as these tokens are backed one-to-one by gold reserves, but made no mention of the benchmark Goldzip would reference.
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