The new service by the Hong Kong gold and cryptocurrency trading provider will make it possible for users to carry out transactions with the DinarCoin token, which is pegged to gold.
With the new wallet, which is about to be implemented in July, users will make payments, buy gold and digital currency, as well as conduct direct exchanges on the company’s platform. The wallet will have its own integrated exchange, notes DinarDirham in a press release. Clients will be able to operate with bitcoin, ether, DinarCoin and Gold Smart Contracts – the company’s digital token that confirms ownership of gold bullion.
The main novelty introduced by the firm is a cryptocurrency with a reliable price, claims the DinarDirham team. Linking the price to gold makes it possible to use all the advantages of digital currencies avoiding their main drawback – volatility.
“Every DinarCoin is pegged to real, physical gold, so the risk of inflation is eliminated. We are working hard to make DinarCoin to be the perfect currency: spendable, anonymous, theft resistant, open source, non-counterfeitable, durable, inflation proof, decentralized and scarce. Users can trade DinarCoin, convert it into real money (dollars, euro, etc), real physical gold or use it as payments at certain merchants. This is the beginning of a new era of global currencies.”
The company declares security and decentralisation its main principles. DinarDirham owns neither physical gold nor the digital tokens it issues. All the assets issued by the company are bridged to its liquidity providers – Saba Capital and Allocated Bullion Exchange (ABX), the company’s physical gold provider is Triplenine Goldworld Gallery. When new DinarCoin or Gold Smart Contract assets are created, it requires three signatures: those of the investor (i.e. the client buying the asset), DinarDirham and the primary broker.
The company monitors gold price in real time. If necessary, clients can receive their physical gold in one of the vaults situated in Zurich, London, Dubai, Singapore, and many other cities.
DinarDirham began as a gold trading platform with the dinar being its main currency, but later on, it expanded. Its blockchain system is based on the Ethereum platform.
DinarDirham is not the only company that has appreciated the opportunities of blockchain on the precious metals market. CoinFox has recently reported that one of the largest Belgium-based settlement houses Euroclear in cooperation with bitcoin exchange itBit is going to adopt a blockchain-based clearing and settlement network for London gold market. Earlier, gold-backed digital tokens were issued by Digix Global.