News

London’s Blockchain.com and CoinShares extend partnership to support “Wrapped” gold backed crypto token

Nicholas Say
Nicholas Say

Product Manager at Blockchain.com Amadeo Pellicce has announced the company has extended its partnership with CoinShares to facilitate the launch of wrapped-DGLD (wDGLD), an ERC-20 compliant token that’s reportedly backed 1:1 with gold.

The wrapped token is designed to combine,

"The appeal of a gold-backed asset like DGLD — available for trading on the Blockchain.com Exchange — with the accessibility and flexibility of an ERC-20 token which you can use on the Blockchain.com Wallet or anywhere in the Ethereum Network."

The brands have been partners since last year. Blockchain and CoinShares will continue to bring the partnership to life through DGLD token, a crypto asset that represents “allocated physical gold stored in a Swiss vault, and tokenized with a side-chain built on the Bitcoin network.” According to the announcement, wDGLD trading is now open on the Blockchain.com Exchange and in the online Blockchain.com Wallet. It also comes with additional service of 24/7 gold purchase with independent physical gold ownership.

Gold is first "allocated and placed in the vault", prior to the development of new digital tokens. After the gold deposit, a DGLD “representing that specific gold is created and sent to a DGLD wallet.” Blockchain.com outined, "This simple approach unleashes physical gold and renders it both digitally usable and physically redeemable."