The use of top cryptocurrencies such as Bitcoin as a store of value has been an ongoing debate in the crypto sphere as well as among gold bergs for quite some time. Oftentimes, Bitcoin’s capacity to store value has been compared to gold’s time-tested feature as a store of value.
In most cases, the volatility that is common among cryptocurrencies has driven investors to gold even though the huge gains made by cryptocurrencies remain an attractive though risky endeavor. Despite the volatility of cryptocurrencies, the potential for their underlying technology is hard to ignore.
As a solution that offers the best of both sides of the argument, gold-backed cryptocurrencies have emerged. These are cryptocurrencies similar to stablecoin but pegged to the value of gold based on different ratios. Here is a look at 8 of the best crypto gold tokens you can find.
1. DigixGlobal (DGX)
The DigixGlobal token is a gold-pegged cryptocurrency created by Digix which is a company based in Singapore.
Intending to make gold divisible, transferable, and redeemable, Digix claims that each DGX token is backed by 1gram of 99.99% pure gold stored in vaults located in Singapore and Canada.
The DGX token is designed to enabled easy and transparent ownership, management, and transferability of gold and as a security feature, the vaults are secured and insured by reputable firms such as the Safe House Singapore. DGX is built on the Ethereum blockchain and all transactions are available to the public for transparency.
2. PAX Gold (PAXG)
Based in New York, PAX Gold is the brainchild of Paxos (a regulated blockchain-based infrastructure developer). Paxos provides blockchain technology for open financial systems with a bouquet of cutting-edge products designed to help banks trade, settle and manage digital assets with confidence.
Their PAX Gold token is pegged to 31.1 grams of gold stored in Brink’s vaults. Therefore, ownership of PAXG tokens ensured entitlement to Paxos’ LBMA (London Bullion Market Association) accredited gold. PAXG is built on Ethereum’s blockchain and can easily be traded across the globe or be redeemed for physical or unallocated gold via the Paxos platform.
3. AABB Gold token (AABBG)
The AABBG token is a creation of Asia Broadband, a company focused on the manufacture and supply of precious and base metals in the Asian markets. Their AABBG token is packed to physical gold at a rate of 1AABBG token: 0.1 grams of gold.
With a maximum supply of 5.4 million AABBG tokens, Asia Broadband claims that the current value of gold reserved locked in vaults is worth $30 million. The main selling point for this gold-backed token is the fact that it enables holders to own small and affordable amounts of gold.
4. Tether Gold (XAUT)
Similar to the popular USD-backed stablecoin (USDT) Tether Gold is a gold-backed cryptocurrency and a creation of the company called TG Commodities Limited.
The XAUT token is available on the Ethereum network as well as on the Tron blockchain with each XAUT token being pegged to a single troy ounce of gold or 31.1 grams of physical gold.
TG Commodities Limited claims that the quality of their gold help in reserve is of London Good Delivery quality and is stored in Swiss vaults where each investor is given a unique serial number for their specific gold bar.
5. Gold Coin (GLC)
Gold Coin (GLC) is designed for those who are looking for a smaller entry point into the gold-backed crypto space. Launched in 2013 by an anonymous entity, the coin is backed by a fraction of 1 gram of gold and is built on the Ethereum blockchain.
6. Novem (NNN)
Built on the NEO blockchain, the Novem (NNN) token is built by Novem AG which is a gemstone and precious metal company with experience in the trade of precious metals across Australia and Germany. Their NNN token is pegged to 1 gram of gold that is stored by an industry-leading storage company based in Liechtenstein.
7. OneGram Coin (OGC)
OnceGram Coin is a Sharia-compliant gold-backed token created by a company based in the United Arab Emirates. With gold vaults located in Dubai’s high-security airports, each OGC coin is pegged to the spot price of gold. OGC Coin’s outstanding feature is the fact that seventy percent of transaction fees on the OGC Coin network are reinvested to buy more gold.
8. Perth Mint Gold Token (PMGT)
PMGT is the first of its kind gold-backed token to receive the guarantee of a government. This gold-backed token is backed by Perth Mint which is an official bullion minting company owned by the Australian government. Each PMGT token is pegged 1:1 with Perth Mint’s gold billions. What’s more, there are no transaction fees with PMGT transactions making it one of the most cost-effective gold assets available.