DGLD
Securing $25+ million of physical gold

Case Study

“We have a simple aim: to ensure that we can imbue digitized gold with all of the properties traditional gold ownership comes with but without many of the physical limitations”

Danny Masters, Chairman of CoinShares

Building a digital Gold ETF without the middlemen

Owning or having exposure to Gold comes in a wide variety of forms. Physical Gold provides direct ownership and title but comes with a long and complex transfer process and security risk of storage.

gold

The Challenges

Independent blockchain

Independent blockchain, but publicly verifiable 24/7

Allocated title ownership

Allocated title ownership of underlying Gold

Physically redeemable and instant settlement

Physically redeemable and instant settlement

KYC/AML compliance

KYC/AML compliance

Regulatory compliance with FINMA rules

Regulatory compliance with FINMA rules

Key storage security

Key storage security

Our Approach and Solution

Custom federated and permissioned blockchain for the DGLD token based on our Bitcoin-based Ocean protocol. Secured with the Bitcoin blockchain via our MainStay attestation service.

Custom mapping tool to ensure a constant, unique token-to-gold allocation representing physical title to the underlying gold. Customised HSM design including BIP-175 for maximum block-signing key security, together with our swiss-based partners Securosys.

Swiss-based, custom hardware architecture, enabling scalable transaction throughput. Onboarding KYC/AML checks with on-chain wallet whitelisting and blacklisting

Swiss-based, custom hardware architecture, enabling scalable transaction throughput. Onboarding KYC/AML checks with on-chain wallet whitelisting and blacklisting

Benefits

  • nomiddlemen Trust-minimized structure without middlemen
  • tokenlinktobar Every token links directly to a physical gold bar
  • tokenburn Redemption of gold via structured token burn
  • speedysettlement Speedy settlement with flexible block times
  • flexiblefees Flexible inflation-based management fee and adjustable transaction fee
  • regulatorycompliance Full regulatory compliance through onboarding

“DGLD combines the stability of the world’s most enduring asset, gold, with the security of the world’s most resilient network, Bitcoin. You can now have the peace of mind of Swiss vaulted physical gold, with the same convenience, but not the same layers of middlemen, as owning a gold ETF.”

Danny Masters, Chairman of CoinShares

Who is DGLD?

DGLD is owned by Gold Token S.A., a consortium based in Switzerland and consisting of 3 Partners: MKS (Switzerland), Blockchain.com and CoinShares.

mkslogo blockchaincomlogowhite coinshareswhite

Interested in building blockchain infrastructure?

We advise on blockchain infrastructure, systems architecture and regulatory support with a strong technical focus. Contact us to schedule a call
consulting@commerceblock.com

Partnerships and Media