Kitco, Canadian’s precious metal retailer is entering into stablecoin industry. Kitco Gold (KGLD), as per the press release on Wednesday, will be totally backed by physical gold held in Kitco’s Direct reserve vault and track the real-time market prices of the gold. However, the confirmation date to start exchanging Kitco gold has not been decided yet, but will be started in the coming weeks, as per the retailing firm.
Although, the main business development official at Kitco Digital Metals Group, John Dourekas, said KGLD represents a digital receipt of physical gold ownership and provides institutional investors with a robust asset class. Investors will have a serious option in contrast to traditional gold products such as gold ETFs, with the extra benefits of real-time exchanging and settlement empowered by blockchain innovation, Dourekas said.
Hong Kong’s First Digital Trust will give administrative consistence, know-your-customer and anti-money laundering procedures, funds processing and last authorization. Stablecoin issuer Stably will give smart contract innovation to printing and consuming KGLD on the Ethereum network while Tradewind Markets will assist in settlement. The ERC-20 stablecoin attempts to combine the safe-haven nature of possessing gold with the adaptability and transparency of digital assets, Kitco said.
Kitco is a worldwide retailer and supplier of precious metals news and information used by millions to access the market prices of silver, gold, and palladium among others. The users will access the digital equivalent of Kitco’s depositories and vaults, evaluated to industry standards, per the release.
Kitco’s passage to gold-supported stablecoins follows Tether Gold and Paxos Gold which dispatched in 2019 and 2020 respectively. However, Kitco’s undertaking comes later, market participants will probably invite the gold bug’s endeavor to pry some of the portion of the overall industry from prevailing stablecoin issuers, Kitco said.
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