Meld Gold tokenized gold trading is set to launch in the third quarter of 2020. The Australian startup is developing a blockchain-based gold trading platform that will be far superior to the current gold market solutions. The proposed platform will provide a tokenized method for sale and purchase of physical gold in a transparent and efficient manner.
Gold is a 1:1 backed crypto stable coin pegged to the price of REAL GOLD. pic.twitter.com/IA52lEAxMq
— MELD.GOLD (@GoldMeld) March 21, 2019
The crypto market is filled with gold-backed tokens where the tokens are supported by an amount in physical gold under the issuer’s custody. In the Meld Gold trading model, every token is equivalent to one gram of physical gold held by the network companies such as Melbourne Mint.
Meld Gold to redefine tokenized gold trading
Initially, the Meld Gold prototype was based on Ethereum. However, the company later switched to the Algorand-based platform and is set to launch operations in July or August 2020. General manager of Meld Gold, AJ Milne, said that the startup has already collaborated with many prominent names in the gold industry, especially the supply chain firms. These firms will start operations immediately as soon as the platform launches in partnership with Meld Gold.
The tokens are backed by physical gold that is distributed across the supply chain partners. Such a decentralized token value proposition is unique to the startup. Refineries and independent vaults still have custody of physical gold, though. These are crucial points where minting and recording of gold tokens will take place. In essence, no single entity will take complete possession of physical gold, which is truly a decentralized model. This will eliminate any single failure points.
Tokens will not be subject to any fixed supply. The token minting and burning will be dependent on the demand and supply cycle of the market. This is radically different from the traditional bullion market, where supply is controlled at central points. Meld Gold will perform the function of a market maker. Interestingly, the platform won’t charge any storage or transaction charges from the users. The company aims to expand its operations in 2021 in North America and Asia.