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You Can Now Buy Tokenized Apple Shares With Bitcoin and Ethereum

A Belarus-based startup has launched a tokenized securities trading platform enabling investors to buy into traditional markets with bitcoin and ethereum.

Tokenized Securities

Blockchain tech company Currency.com has announced the launch of its trading platform for tokenized securities. The Belarus-based platform is intended to enable investors to trade and invest in common financial instruments such as equities, commodities, and indices directly, without having to convert their cryptocurrencies in fiat.

According to the official release, it will eventually issue over 10,000 tokenized securities but will start with over 150, including everything from popular stocks to silver, oil and natural gas.

Users will be able to purchase tokens, which mirror the performance of certain conventional assets such as Apple shares listed on NASDAQ. It will cost the same price as an actual Apple share and can be bought with BTC or ETH.

Currency.com is the very first blockchain-based business licensed by Belarus’ High Technology Park (HTP) under the country’s Decree No. 8 “On The Development of a Digital Economy.”

Apart from being compliant with local legislation, the platform imposes strict KYC and AML requirements aided by blockchain intelligence services such as Elliptic, Chainanalysis, and Coinfirm. In other words, blockchain tracking software will be used to monitor transactions.

Additionally, Currency.com is going to use its FCA and CySEC regulated sister platform to offer access to the tokenized versions of a contract for the exchange of a specific index, commodity or equity.

Tokenized Assets: A Trend in The Making?

Earlier this month, Bitcoinist reported that an Estonian-based platform called DX Exchange would offer users to trade big-name stocks using tokens on the Ethereum blockchain through smart contracts.

Meanwhile, back in 2018, Singapore’s Monetary Authority (MAS) – the country’s de-facto central bank, teamed up with major firms like Deloitte, Anquan, and NASDAQ, to develop solutions for simultaneous exchange and settlement of tokenized digital currencies and security assets.

It appears that the tokenization of traditional assets like stocks is becoming a growing trend as the number of platforms enabling this is increasing with each day.

What do you think of token-based traditional assets? Don’t hesitate to let us know in the comments below!

Images courtesy of Shutterstock

Dub 26

GoldMint Opens Up Sale of Crypto Assets, Secured by Gold

· April 26, 2018 · 6:30 pm

GoldMint.io, a pioneering company which hedges a stable cryptocurrency with real gold, has opened up sales of GOLD coins.

What is GoldMint?

GoldMint is a blockchain-based platform powered by the digital asset GOLD, which is 100% backed by physical gold or delivery futures. Therefore, one digital GOLD asset costs the same as one ounce of gold on the Chicago Mercantile Exchange (CME).

GoldMint’s physical gold is stored in the US Federal Reserve System’s banks, as well as in Singapore’s SGPMX custodians. For the sake of assurance, GoldMint fully intends on always making sure that its gold reserves are constantly even to or exceed the number of GOLD assets currently in circulation at any given time.

The project runs on the GoldMint blockchain, is 100% backed by physical gold or delivery futures, can be used as a trust management investment tool for peer-to-peer loans and operations with gold, and is a transparent, fast and secure payment tool.

GoldMint PTE LTD itself is a Singapore blockchain company specializing in gold tokenization. The company successfully completed its initial coin offering (ICO) in 2017 and raised $7 million.

The company operates with two assets: gold-secured GOLD and MNTP tokens, which is used in the GoldMint locker to confirm transactions. Additionally, MNTP token holders get access to preferential commissions for operations with GOLD assets. The company’s tokens are currently traded on Bancor, Yobit, SIMEX, IDEX, Etherdelta.

The Sale is Open

As of April 12, GoldMint users may buy and sell GOLD coins on Bancor using one or more of the 50 supported cryptocurrencies. GOLD is also available on Simex (Singapore International Monetary Exchange and IDEX (Decentralized Ethereum Asset Exchange).

For the first time in history, users can take advantage of the opportunity to buy a stable coin, completely backed by the price of gold, in exchange for cryptocurrency. With the help of the GOLD stablecoin, crypto investors can hedge against the risk of cryptocurrencies falling in an extremely volatile market — which happens all too frequently.

GOLD will also bring a new class of investors into the cryptocurrency market, as precious metals investors previously uninterested in cryptocurrency now have a reason to get involved.

A Difference that Matters

Not all cryptocurrencies and digital assets are created equal.

The key difference between GOLD and other digital assets is that all GOLD coins are actually backed by a physical product — in this case, the most successful store of value in history, gold.

Said gold is purchased under delivery futures on the Chicago CME exchange and then placed in a bank of the U.S. Federal Reserve system. When extreme volatility arises in the cryptocurrency market, GOLD affords cryptocurrency investors the ability to mitigate their risk by investing in a stable coin, as opposed to converting to fiat currencies.

Additionally, GOLD smart contracts ensure that the amount of crypto assets sold is equal to the amount of gold held in GoldMint company.

GOLD coins may be purchased with cryptocurrency at the Bancor exchange and can be stored in your compatible Ethereum wallet. Because GoldMint works on the Ethereum network, it is also compatible with ethereal wallets.

The Goldmint team plans to launch a personal account with a multi-currency wallet, which will afford users the ability to purchase tokens via fiat money, bank transfer, or credit card, in 2018.

If you’d like to learn more about the gold-backed stablecoin, check out GoldMint’s official website, or follow the project on Twitter, GitHub, Facebook, and Reddit.

Are you interested in investing in a stable cryptocurrency backed 100% by real gold? Do you think GOLD is a safe way to protect yourself against the cryptocurrency market’s volatility? Let us know in the comments below!

Images courtesy of GoldMint, Pexels

Bitcoinist does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. Readers should do their own research before taking any actions related to the company.

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Říj 04

Tokenization of Traditional Assets

· October 4, 2017 · 3:45 pm

The entire spectrum of traditional financial assets has always been plagued with issues stemming from lack of liquidity. Blockchain technology is now being deployed to solve some of these issues through the tokenization of these assets.

[Note: This is a sponsored article.]

The Problem Plaguing ‘Traditional’ Real World Assets

Real estate, stocks, oil, or gold: All real-world traditional financial assets, all succumb to one common shortcoming – they’re not liquid. Liquidity refers to the ‘inexpensiveness to trade’: a factor which hugely influences trading volume. In fact, these assets are traditionally so hard to physically divide or transfer that a new system was developed to get around it: trading papers that represented them.

This new system still failed to solve the problem, however, as innumerable difficulties and risks arose from the complex and cumbersome legal paper-based agreements. What’s the solution, you ask? Tokenization of these assets, i.e. using a blockchain to convert these rights into a digital token that is backed by the asset itself.

Is Tokenization the Solution?

Tokenization of these illiquid traditional assets gives rise to the birth of a new market to trade the tokens thereby severely decreasing frictions to trade. This new market brings in new people who previously didn’t have access to trading such assets due to expensive procedures or legal complications that are incredibly hard for the average person to make sense of.

As a result, tokenization effectively ends up making the asset highly liquid, apart from enhancing its value due to the new found increased liquidity. The other noteworthy benefit of tokenization is security. Digitally trading tokens means buyers and sellers do not have to worry about physical and operational security; one can sleep peacefully knowing that even if a thief breaks into their home, their digital token will remain out of harm’s way. Since the same cannot be said of a physical asset, tokenization clearly emerges as an easier and more secure investing process.

Tokenizing Gold with GoldMint

Tokenizing Gold with GoldMint

Assets such as gold and oil, which can be exchanged for another of the same kind, are called fungible assets. Since these assets can be broken into multiple smaller pieces, their tokenization is very easy. This is achieved by bijective one-to-one mapping of the set of assets with the set of tokens.

One particular standout project, GoldMint, has done exactly that as it seeks to provide gold ownership solutions for cryptocurrency investors. Although gold is regarded as the safe haven precious metal for investors, owning it, however, comes with expensive security, safekeeping, insurance, and lack of liquidity related issues. GoldMint’s blockchain solution to these inherent problems is crypto assets backed by physical gold. GOLD a 100% physical gold-backed token.

GOLD tokens are 100% backed by physical gold or ETF using the current price of gold set on the LBMA exchange at the time of sale. This ensures stability and transparency while hedging the risk and the volatility associated with wild crypto-market fluctuations. GOLD, which is run on the GoldMint blockchain, can be used as a trust management investment tool. For instance, GOLD token holders can use them in loans, guarantees, and escrow services. GOLD also acts as a transparent, fast and secure payment tool.

GoldMint’s utility token is called MNT. This is used as a Proof-of-Stake (PoS) consensus algorithm for confirming GOLD cryptoasset transactions. MNT miners can receive up to 75% in GOLD commissions for validated transactions. When GoldMint’s own blockchain is established, all that is needed to be done to become a validator is to download the official GoldMint Wallet app and launch it using your GoldMint account. MNT will run on the Ethereum blockchain to begin with.

Post-distribution, GoldMint intends to launch its own Graphene-based PoS blockchain Initially, MNT will be sold and distributed on the Ethereum blockchain. After MNT is distributed, GoldMint will launch its own PoS blockchain which will make the ecosystem faster, safer, and more productive.

The Road Ahead

Although blockchain-based solutions like GoldMint have the power to solve these old problems associated with traditional assets, there lie some roadblocks and speed bumps on the way down this road. Legal reform is needed as technology always outpaces regulations. Most countries require the transfer of physical assets with a government authority, which is counter-intuitive to the token-based approach. It does not help that digital tokens are not bound by geographical boundaries, which becomes a problem as security laws differ in different jurisdictions.

Since traditional assets are usually owned by a small group of owners, the risk of centralization during tokenization is something companies need to find ways to address. At the same time, the biggest challenge for companies tokenizing traditional assets will be to ensure that the tokens remain linked to the physical asset itself. If the buyer or seller lose trust in the company to do so, the token value automatically falls to zero.

Although mass-scale adoption of traditional asset tokenization will take years, it is bound to happen. As with any new technology, those who get in early get rewarded handsomely for their courage and appetite.

Do you think GoldMint will solve the liquidity problem that traditional assets like gold often face? Let us know in the comments below.

Images courtesy of GoldMint, Wikimedia Commons