CoinShare Partnership Launches Gold Token On Bitcoin Sidechain

October 17, 2019 / by Crypto.IQ

On Oct. 15 CoinShares and a group of other companies announced the launch of a gold token dubbed DGLD. Is working with MKS and a wallet provider on the project.

The project has taken two years to develop on the Bitcoin network. According to the announcement made on Tuesday, the network will launch with over $20 million in digitized gold. A Swiss vault holds the gold to back up the DGLD tokens, and each will have the backing of 1/10th troy ounce of gold.

According to CoinShares Chairman Daniel Masters, DGLD will operate as a Bitcoin network side chain. Masters asserted the aim of the project was imbuing digitized gold with all the features of conventional gold ownership. He added that using the Bitcoin network as a layer of security differentiates DGLD from other gold-backed tokens. There is a link of DGLD to the through the Mainstay protocol of This is a way of enhancing the immutability of the token.

CommerceBlock is a blockchain infrastructure development company that offers the tech stack for the gold token. It is practically impossible to double-spend DGLD because the BTC needs rewriting and a which effectively can’t happen. , the UK–based capital Markets Company, will offer for the GDLD token.

The GDLD will be available through recently launched crypto exchange The Pit. The group of companies responsible for the token has not provided a timeline for the launch. But the CoinShares Chairman stated that the token could be available in the next few weeks. DGLD will be available in all countries except Canada, the US, and sanctioned jurisdictions. There are plans to list the GDLD token on several exchanges going forward. 

Masters stated that the token is available through the DGLD wallet beside the exchanges. They plan to review and accept more applications going forward on a need basis. The firm digitized the over $20 million gold primarily for high-net-worth individuals, but their target is institutional and retail users. 

The DGLD token enjoys a regulatory framework different from that of other gold-based products like ETFs. According to Marwan Shakarchi, the president of MKS, the token is more similar to a stablecoin.