Stablecoin Issuer Stably Partners with Kitco to Issue a Gold-Backed Stablecoin

Stablecoin Issuer Stably Partners with Kitco to Issue a Stablecoin

Stablecoin Issuer Stably has partnered with Kitco Metals, a Canada-based provider of news and data on gold and other precious metals, to issue a gold-backed stablecoin called Kitco Gold or KGLD.

According to an announcement by Stably on Wednesday, August 4, Kitco Gold will be a physical gold-backed stablecoin, and each token will be equal to 1 ounce of .9999 fine gold. This gold will be held in Kitco’s DirectReserve Vault and will track the real-time market value of the precious Yellow metal.

The Kitco Gold stablecoin will be based on Ethereum’s ERC20 token standard. Stablecoin issuer Stably will develop the smart contract technology for minting and burning KGLD on the Ethereum network. According to Stably, “two independent security firms have reviewed the contract to ensure holders can have the utmost confidence in the platform.”

Hong Kong-based First Digital Trust will provide regulatory compliance, know-your-customer and anti-money laundering procedures, funds processing, and final authorization. New York-based TradeWind Markets will use its distributed ledger technology (DLT) to provide trusted ownership records for the gold backing the upcoming Kitco Gold (KGLD) tokens.

Those who want to invest can do so by owning as little as one ounce of precious metal. According to Stably’s blog post, holders of Kitco Gold (KGLS) tokens will be able to trade KGLD at any time for actual gold, but they also have the option to exchange them for US dollars.

The announcement reads:

“With KGLD, there are small on-chain transaction costs but no storage or management fees, ensuring that you keep every penny possible of your investment. And since it’s a digital form of gold, this now also makes gold truly borderless, and you can easily send KGLD to those abroad within a few seconds. Additionally, holding gold will no longer be a hassle for institutional investors.”

The exact date for the start of KGLD trading has not been announced yet. According to Kitco Gold’s website, KGLD will not available to the residents of the United States of America, Canada, and Hong Kong among other countries.

The launch of KGLD will follow Paxos Gold and Tether Gold (XAUt), AABB Gold Token (AABBG).

Stably is a Seattle-based stablecoin issuer that also manages an ERC20 US Dollar-pegged stablecoin USDC launched in 2018. As Crypto Economy reported, Stably recently launched its USDC stablecoin on Tezos public blockchain. More recently, it partnered with Stellar to provide USDC and USDS stablecoin deposits/withdrawals for Stellar wallets and anchors.

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