The Ethereum-based gold tokenisation company DigixGlobal has secured a deal with Silver Bullion and The Safe House and will be transferring their current gold holdings to Silver Bullion for the upcoming relaunch of DGX 2.0.
DigixGlobal is an asset tokenisation company on Ethereum that puts digital gold ownership into your Ethereum wallet. The move will make DigixGlobal the stablecoin of choice amongst virtual currencies and facilitate their customer's future gold purchases and storage, said a statement.
Silver Bullion, established in 2009, is one of Singapore's largest precious metals dealer and custodian, securing about 200 million SGD ($147m) worth of clients' precious metal assets in Singapore and are also audited by PricewaterhouseCoopers. The Safe House, a subsidiary company of Silver Bullion, is fully and wholly incorporated in Singapore, a country with strong property rights and independence from other jurisdictions.
The Safe House was also mentioned in the latest International Enterprise Singapore Asia's Global Precious Metals Trade Hub write up alongside the Freeport as one of the only two featured vaulting facility for bullion.
DigixGlobal chose to switch from MalcaAmit to Silver Bullion and The Safe House to take advantage of a number of synergies. DigixGlobal's CEO, Kai C. Chng said: "Silver Bullion is the ideal partner for blockchain technology. Their receptivity to integrate with DGX and blockchain technology bodes well for Digix's future."
Chng pointed to Silver Bullion's DUX Bullion Testing System, which uses densitometers, ultrasonic thickness measuring devices and X-ray fluorescence spectrometers to obtain accurate authentication results. Silver Bullion's full protocol can be found here.
Shaun Djie, DigixGlobal's co-founder and chief commercial officer, said: "Silver Bullion's foresight in opening new markets to the cryptocurrency world makes it tremendously easy for us to work on future forms of collaboration. They welcome the idea of a precious metals backed cryptocurrency, potentially expediting the release of the Silverbacked coin on DigixGlobal's platform."
Silver Bullion's peer-to-peer collateral system, where existing bullion owners on their platform are able to pledge their bullion as collateral in return for a cash loan, can soon be available to Digix customers opening doors to an entirely new use case of DGX.
This means that holders of DGX and bullion assets will be able to lend out their digital gold as collateral to borrow fiat money at a market interest rate to various maturity dates. Silver Bullion's peer-to-peer loan platform has achieved close to 11 million SGD in matched loans in its first year with zero late payments and defaults.
This peer-to-peer loan platform will be directly integrated with DGX tokens in a future release of the Digix platform, where DigixGlobal's customers can collateralise their asset holdings in return for a fiat lending with interest rates as set by the makers and takers, said the release.
Founder of Silver Bullion, Gregor Gregersen, added: "We heard about the waves DigixGlobal has been making over the past year and are very glad to have them storing precious metals with us. Digitising assets from origin to storage has been a hallmark of blockchain technology that DigixGlobal seem to epitomise."
Digix is currently undergoing a relaunch of their digital gold platform by the end of August, which coincides with GateCoin's relaunch of their virtual currency platform in the same month. Separate talks have already begun on the integration of DGX onto the Hong Kong-based exchange.