In anticipation of increased retail demand for on-chain tokenized gold, Kinka Gold has begun issuing the first wave of $XNK, a gold-backed ERC-20 token. The token has been made tradable on CoinW for the first time, with traders able to trade the gold-pegged token starting February 19 at 10:00 AM (UTC).
The price of each $XNK token is directly pegged to the price of gold, with 1 $XNK equivalent to 1 troy ounce of gold that meets LBMA standards. The gold is premium gold with a purity of 99.9% and is issued by a subsidiary of Daiichi Commodities, a Japanese trading company that has been trading gold for over 40 years. Gold is regulated for use on the Osaka Exchange and the tokens represent redeemable ownership of the gold itself.
In the absence of a regulated fiat-backed stablecoin, $XNK will provide Japanese cryptocurrency traders with a powerful alternative.
The launch of $XNK also heralds exciting new opportunities for physical gold in the world of cryptocurrency finance, DeFi, and broader blockchain applications. $XNK will enable DeFi to leverage untapped liquidity previously held in physical gold reserves, while providing traditional financial institutions with a cheap and efficient way to hold gold on-chain.
The low cost of storing and sending $XNK is a major advantage over its traditional predecessor, physical gold, and Kinka Gold hopes that issuing tokens will open up access to gold to more retail gold investors. All $XNK tokens can be fully redeemed for actual physical gold in a bankrupt remote vault.
Daiichi Commodities is one of Japan’s largest and most prestigious gold trading companies and has been handling gold for over 40 years. The move into the cryptocurrency market represents an exciting future for the world’s oldest and most stable asset. With the growing adoption of cryptocurrencies in traditional finance and growing retail demand for gold given its continued stability in contrast to the massive inflation of fiat currencies, the issuance of Kinka Gold could not be more timely.
About Kinka
Kinka is a gold-backed digital asset on the Ethereum blockchain issued by its subsidiary Daiichi Commodities. The bankruptcy is remote and issued in accordance with Japanese regulators. A $XNK token is equivalent to one troy ounce of gold and is redeemable in kind.
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