Another gold-backed cryptocurrency is making its way onto the trading market. This time, the issuing company is Aurus, a digital currency startup that says it’s looking to “bridge the gap” between gold and crypto owners.
Aurus: The Latest Gold Stablecoin Master
Gold is widely considered a stable asset. Much like USD or other forms of fiat, gold is not known to go down in price or value during times of financial or economic strife. Thus, this new token – being that it’s backed by gold – would be considered a stable currency, and it’s certainly not the first time a new digital coin with gold support has been introduced by a company.
Why then, is this coin any big deal? Guido Van Stijn, the CEO of Aurus, claims that while there are other gold-backed coins in existence, this one is unique because each coin can be traced to a specific gold bar. Thus, even if Aurus tanks in the future – as some startups have done before – the coins will live on, and investors will not lose out just because the issuing company goes kaput.
He explained in a statement:
Access to the gold market can be achieved without the need for gold brokers.
Tony Dobra, who serves as an advisor to the company, is also adamant that the currency (known as AWG) is likely to change how stable coins – particularly gold-backed stable currencies – will operate. In an interview, Dobra says:
While it is not the only gold on the blockchain, it is the most truly gold-based trade available in crypto. Via the AWG cryptocurrency, producers, refiners and traders can tokenize their gold in multiple locations of their choice and trade in the underlying gold on several platforms and exchanges. Because there are multiple locations, providers and traders, the best price can be obtained. You are not limited to just one location or one price provider.
The Industry Just Keeps Growing
AWG is still in its early stages and is looking to establish more liquidity. The currency can reportedly only work granted a specific exchange mechanism is adopted “at the point of sale.” Granted this works, we’re likely to see several more blockchain-based precious metals and cryptocurrencies backed by stable assets arrive in the future. AWG executives claim that they would like to see the currency used for everyday purchases the way one might use the euro or the U.S. dollar.
November was a big month for gold-backed stable currencies. Among the companies to release such tokens included Tether – which had previously issued the controversial, but popular USDT – and Coin Shares. Tether Gold is slated for a Christmas release, while DGLD – the currency brought on by Coin Shares – has yet to receive a release date. However, executives say they will issue up to $20 million-worth in the coming months.