Canada-based Kitco, a global retailer of precious metals, has announced the release of a stabelcoin backed by gold. This was reported by CoinDesk, citing a press release from the firm.
According to the announcement, Kitco Gold (KGLD) will be backed entirely by physical gold in Kitco DirectReserve vaults. The quoted asset will track the market value of the metal in real time.
Stablecoin will be issued by Project Stable, which will provide smart contract technology to issue and burn tokens on the Ethereum network. The Tradewind Markets platform will provide settlement assistance.
Hong Kong-based First Digital Trust will provide compliance services, know-your-customer (KYC) implementation, anti-money laundering (AML) measures, processing and ownership assurance.
Kitco Digital Metals Group business development director John Dorekas said KGLD was a digital receipt for physical gold ownership and would provide institutional investors with a "trusted" asset class.
"Investors will get a competitive alternative to traditional gold-based products, such as ETFs, with the added benefits of real-time trading and settlement provided by blockchain technology," Durekas said.
The exact start date for KGLD trading is yet to be determined, with Kitco expecting it to happen in the coming weeks.
As a reminder, the Ethereum-based Pax Gold (PAXG) gold-backed stackcoin was launched by Paxos in 2019.
Electrum Wallet is considered a safe exchange that allows user account protection via the use of Two Factor Authentication (2fa). On May 7, 2019, Electrum Wallet experienced a major hack which resulted in 7000 Bitcoins stolen from the exchange.