Investing in commodities like gold and silver has traditionally involved the direct purchasing of physical gold bars or coins. In large quantities, this carries the additional cost and logistical considerations of storage and security. By digitizing gold ownership and transactions on Algorand, Meld Gold provides a secure, transparent and easily accessible way for both individual investors and industry leaders to leverage the stability of precious metals in the modern financial landscape.
"Velocity and low cost are fundamental. [A blockchain for tokenized gold and silver] needs to have instant finality, you need high throughput, you need security, you need no downtime, you need all of these factors, which Algorand does so well."
- Michael Cotton, Founder & CEO, Meld Gold
Investing in precious metals comes with challenges including logistics, cost, and security. Meld Gold supports the entire gold supply chain with a safe, secure, and stable platform that not only removes middlemen, but provides the best prices aggregated from across the industry.
Each token is backed by one gram of the corresponding precious metal and is fully redeemable for that metal. Today, Meld Gold supports gold and silver tokenization, but is designed to be transferable for commodities like diamonds and other high-value assets.
Key benefits
- Tokenizing gold and silver enhances the utility of these precious metals in today's digital economy.
- Investors in the gold and silver markets benefit from more efficient trading of assets, greater liquidity, and fewer overhead costs.
- By tokenizing gold and silver, the market can welcome everyone from individual investors to the industry’s biggest institutional leaders.
Algorand’s low transaction fees and high throughput make small investment thresholds, such as $0.50 worth of gold, economically viable, while instant finality ensures that investment transactions can happen fast and with high confidence.
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