Stablecoin Issuer Stably has partnered with Kitco Metals, a Canada-based supplier of news and data on gold and other rare-earth elements, to issue a gold-backed stablecoin called Kitco Gold or KGLD.
According to a statement by Stably on Wednesday, August 4, Kitco Gold will be a physical gold-backed stablecoin, and each token will be equivalent to 1 ounce of.9999 great gold. This gold will be held in Kitco’s DirectReserve Vault and will track the real-time market price of the precious Yellow metal.
The Kitco Gold stablecoin will be based upon Ethereum’s ERC20 token requirement. Stablecoin issuer Stably will develop the clever contract innovation for minting and burning KGLD on the Ethereum network. According to Stably, ” 2 independent security firms have examined the contract to make sure holders can have the utmost confidence in the platform.”
Hong Kong-based First Digital Trust will offer regulatory compliance, know-your-customer and anti-money laundering procedures, funds processing, and last authorization. New York-based TradeWind Markets will utilize its distributed journal technology (DLT) to supply relied-on ownership records for the gold backing the upcoming Kitco Gold (KGLD) tokens.
Those who wish to invest can do so by owning as little as one ounce of precious metal. According to Stably’s post, holders of Kitco Gold (KGLS) tokens will have the ability to trade KGLD at any time for actual gold, however, they likewise have the choice to exchange them for United States dollars.
The announcement reads:
“With KGLD, there are small on-chain deal costs however no storage or management fees, ensuring that you keep every penny possible of your investment. And given that it’s a digital type of gold, this now likewise makes gold truly borderless, and you can quickly send KGLD to those abroad within a few seconds. Furthermore, holding gold will no longer be a hassle for institutional investors.”
The specific date for the start of KGLD trading has not been revealed yet. According to Kitco Gold’s site, KGLD will not be offered to the homeowners of the United States of America, Canada, and Hong Kong amongst other nations.
The launch of KGLD will follow Paxos Gold and Tether Gold ( XAUt), AABB Gold Token ( AABBG).
Stably is a Seattle-based stablecoin company that likewise manages an ERC20 United States Dollar-pegged stablecoin USDC introduced in 2018. As Crypto Economy reported, Stably recently introduced its USDC stablecoin on Tezos public blockchain. More just recently, it partnered with Stellar to offer USDC and USDS stablecoin deposits/withdrawals for Stellar wallets and anchors.