The Canadian precious metals retailer will release Kitco Gold (KGLD) stablecoin, which will be fully backed by physical gold from Kitco DirectReserve vaults.
The stablecoin will be backed by physical gold and will follow the real-time market value of gold. According to the press service of the company, the exact date of the start of KGLD trading has not yet been determined and will become known in the coming weeks.
As part of the stablecoin issue, First Digital Trust in Hong Kong will ensure regulatory compliance, KYC / AML procedures and final authorization. The stablecoin issuer Stably will provide smart contract technology to issue and burn KGLDs on the Ethereum network, while Tradewind Markets will handle the settlement.
According to Kitco, the ERC-20 stablecoin should combine the security of gold ownership with the flexibility and transparency of digital assets. Kitco is a global retailer and provider of precious metals data used to access market prices for gold, silver and palladium. Users will have access to the digital equivalent of Kitco’s repositories and vaults, audited to industry standards.
Kitco Digital Metals Group Business Development Director John Dourekas said the KGLD represents digital proof of ownership of physical gold and a “safe” asset class for institutional investors.
“Investors will have a competitive alternative to traditional gold products such as ETFs with added benefits for real-time trading and settlement on the blockchain,” Durekas said.
As a reminder, Paxos launched the gold-pegged stablecoin Pax Gold in 2019, and Tether launched Tether Gold in 2020.
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