Copenhagen cryptocurrency payment processor Coinify and Ethereum-based DigixGlobal have strengthened their existing partnership by allowing DGX gold backed tokens for payments in exchange for merchant goods and services through Coinify.
Digix Gold represents a new paradigm for the tokenisation and storage of gold, whereby it can be stored, sent, and received with an Ethereum wallet, and its ownership verified in realtime by searching the Ethereum blockchain.
The Digix Proof of Asset (PoA) protocol uses Ethereum and the Inter Planetary Files System (IPFS) to track an asset through its chain of custody.
This allows for the open and public verification of an asset's existence without a centralised database. DGX gold tokens can be used by anyone to create lending platforms, payments processing, funding, or as collateral by virtual nations.
Coinify is the largest European blockchain payment provider with growing presence in Asia with access to over 10,000 merchants such as Hungry Group, Queal, and Just-Sold. It was backed by a multimillion dollar capital injection from SEED Capital (funded by the Danish government) and Accelerace.
Coinify CPO, Lasse Birk Olesen said in a statement: "At Coinify, we are looking into the option to add DGX gold tokens along the 17 blockchain currencies our payment platform currently supports. This will be the first physically-backed blockchain token to be offered as a payment option for our merchants' customers.
"Asset backed tokens represents a significant step forward in the blockchain payment industry. They will increase the adoption of blockchain technology for those who would rather hold tangible assets on the blockchain. We are excited to see this happening and are fully supportive in taking this step forward."
Digix recently announced plans for the DigixDAO crowdsaleto allow participants to influence the company's software development features going forward. Ethereum has made decentralised autonomous organisations (DAOs) a reality.
DigixDAO token holders can pledge their support for proposals they would like to see developed by the company's engineers. The pledges will be tallied and the most popular requests worked on. In return for their efforts, token holders are rewarded with transaction fees of Digix Gold tokens on the Ethereum platform.
Shaun Djie, Marketing Director at Digix, says, "We also have plans to list more physical products such as silver and diamonds at Digix. Coinify's receptivity and show of support bodes well for the Ethereum ecosystem."