Digix’s DGX, the world’s first gold-backed digital token, has been listed on the Switcheo Network. Members of Switcheo Network can trade DGX against DAI.
Commenting on the listing, Shaun Djie, Co-founder and COO of Digix, said,
“Listing DGX on Switcheo Network will offer the retail investors a new avenue to trade our gold-backed token on a Decentralized Exchange with no additional registration fee and will present existing DGX holders with new opportunities.”
Digix has registered physical gold bars on its blockchain, and each DGX token is backed by 1 gram of gold that has been marked by the London Bullion Market Association. All DGX tokens are stored in accredited precious metal vaults in Singapore and Canada. Thus, Digix wants to allow customers to buy gold in small incremental amounts and even use it for trading. As all the transactions are on the blockchain, the records are secure with full privacy.
Djie also said that East Asia and India accounted for 70% of gold bar sales globally. Thus, Digix wanted to breakdown barriers to procuring the yellow metal even further to enable more consumers in these regions to own gold and trade in it. He added that Digix and Switcheo would improve Singapore’s standing in both the international blockchain market as well as the gold market.
Asset-backed tokens are preferred over other digital tokens as they have some physical asset backing them. Even among asset-backed tokens, Digix stands out as it is backed the most trusted physical asset of all, gold.
Gold is the most secure investment as its value is because of religious reasons rather than a business. There was a time when even the US dollar was backed by gold. As its value is high and the range of fluctuation of its prices is also very less, it becomes very difficult for a large portion of the population to own it. Gold biscuits and coins are available in the markets, but even these are not seen as investment instruments. The Digix token is like a SIP (Systematic Investment Plan) where users can buy a couple of DGX tokens at the end of 1-2 years sell them to earn physical gold. Thus, they get to own a precious metal like gold, which they can further mortgage to take out gold loans, etc.
Switcheo Network is the world’s first decentralized non-custodian cryptocurrency exchange on the Neo blockchain. Switcheo supports transactions across Ethereum, EOS, and NEO blockchains. Switcheo does not hold any cryptocurrency. It just acts as a facilitator of transactions between different blockchains. Thus, it is not attractive to hackers. Also, Switcheo uses mnemonic phrases to create multiple wallets of one user. The user can generate a separate private key for each blockchain. Switcheo cannot access these private keys, and hence privacy of users is enhanced on Switcheo Network.