LBMA Accredited Gold in Tokenized Form to be Introduced in Turkish market
Thanks to blockchain-technology based tokenization, gold wholesalers are beginning to identify fresh ways for entering into retail. AgaBullion, a worldwide bullion trading organization, and Aurus Technologies, a fintech business services in the UK, have formed a cooperation to provide gold-backed tokens in the Turkish market.
Investors will be able to own grams of LBMA-accredited gold through AurusGOLD as portion of the cooperation. AurusGOLD (AWG) is coined and delivered by precious metals dealers utilizing Aurus’ blockchain technology based system as a gold-pegged ERC-20 token on the Ethereum network.
“Gold is the oldest known decentralized money system,” said Gökhan Ylmaz, chairman of AgaBullion. “It has evolved into a worldwide recognized and proven ecosystem.” He goes on to say that a physically-pegged token makes perfect sense because existing cryptocurrencies are unstable given the lack of underlying assets and significant volatility.
Sarp Tarhanaci, CEO of AgaBulllion, claimed, “We are seeing a big potential for digitized precious metals.” “We can now use Aurus’ blockchain platform to offer partial gold ownership in Turkey thanks to our partnership with them.”
Turkey is lucrative market for digital gold, according to AgaBullion, because of its tradition of investing in physical gold and the widespread adoption of crypto as an alternative strategy to secure capital. In terms of market potential, AgaBullion said that the COVID-19-related shutdown in Turkey prevented citizens from accessing actual gold:
“Turkish people are seeking something dependable and long-term. Consumers cannot acquire gold using online platforms supplied by banks because of their centralized nature. The most obvious subsequent step for AgaBullion is a digital product.”
Turkey is among the world’s greatest gold markets, with the precious metal largely regarded as a symbol of wealth. Mark Gesterkamp, Aurus’ business development manager, stated:
“AgaBullion is an authorized member of Borsa Istanbul, providing us with the framework, market expertise, and customer network we need to grow the use of digitized gold and other precious metals in Turkey.”
The primary objective for AWG, according to Aurus, is to present it as a method of payment. The team does not intend to compete with fiat currencies, but rather to provide a safe and secure substitute. According to the company, blockchain technology provides for a more accessible and effective system. “It renders precious metals more accessible to the masses, rather than simply the elite high net worth individuals who now control the market.”