Gold-Backed Cryptocurrency Aims To Tap Stablecoin Appeal
- CoinShares offering tied to an offset of Bitcoin’s blockchain
- Token to trade in Europe following final regulatory approvals
Photographer: Jung Yeon-Je/AFP via Getty Images
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Bitcoin may be a distant alternative to safe havens, but CoinShares Group is betting that trading a digital gold asset linked to the token may provide investors with a sense of security.
The launch of the product, called DGLD, included $20 million of the digital metal tied to an offset of Bitcoin’s blockchain, with each token representing a 10th of a troy ounce. One ounce of gold for immediate delivery on Tuesday cost $1,483.61, or about a sixth the price of one Bitcoin. Bullion often serves investors as a hedge against instability.