Digix Stablecoin Seeks to Put Gold on the Ethereum Blockchain

The stablecoin is still an evolving concept, and there have been multiple approaches to it. Dai has algorithmic methods to keep it tied to the US Dollar, while the multitude of stablecoins – USDT, PAX, GUSD, TUSD, and USDC — all simply offer a 1:1 exchange ratio. The recently-rebranded Ampleforth offers an elastic supply so that the holder always gets the same value out of their investment, while they may have a different number of tokens depending on the market value of the token.

Digix takes a different approach, tying the value of its DGX token to 1 gram of gold. A small outfit run out of Singapore, Digix Global says that it will redeem tokens for physical bars of gold that they store in their vault. Redemption must take place in person, primarily for security but also due to the high cost of internationally shipping gold safely. We spoke to Kai C. Chng, the co-founder of Digix, about how it works.

Reference: https://www.ccn.com/digix-stablecoin-seeks-to-put-gold-on-the-ethereum-blockchain/

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