Stablecoin is still an emerging concept and every currency has a different approach. That's right, Digix also has a different approach, roping the value of its own DGX tokens for a gram of real gold. The DGX is a completely gilded token and is officially listed on Tokocrypto.
Digix Global is a small business short of Singapore claims that it will redeem the tokens for the gold bars that they actually store in their vault. However, the redemption process should be done in person primarily for security reasons and also because of higher costs for international shipping of gold safely.
From the co-founder's desk
Kai C. Chng, the Digix co-founder in an interview with a leading broadcaster said Digix has developed a very interesting process to track its gold bars on the stock exchange.
He also explained that each gold bar is initially scanned into the system and its receipt data is stored at a later time, and then linked to the token that is issued for sale. When a person trades or holds the DGX tokens, he actually holds the property certificates on gold.
Chng also mentioned that there is only a need for minimal redemption, but these tokens can still play a key role in the trading strategy. And he said they have what they call a fee for the Demurrage which is almost equivalent to insurance, to storage, which is codified in the smart contract of every gold ingot.
Currently, the exchange lists its products transparently and users are free to clarify their questions about tracking and archiving. The DGX token is currently present in numerous popular exchanges including Ethfinex. However, most of its transactions take place on decentralized markets.
Previously, the exchange had only about 1400 grams available, but Chng said the exchange would get another 5,000 units from the London Bullion Market Association, which is the official supplier of the exchange. Recently, they had obtained all this and had also sold a number, and their supply was almost 4,600.
Currently, there is an ongoing sale on the Digix and people interested in the exchange can go and try it. The exchange is selling under the cost it costs them to get gold. And the sale is open until the end of the year to stimulate the user's business.
The CEO also explained that in a routine situation, the company and transaction fees absorb almost 0.05% of the price of gold by placing a prize on tokens in contrast to the bars of gold effective at market value. But until the end of the year, the exchange will absorb taxes.
The policemen concluded by saying that three people came to Singapore and made redemptions, one of which was redeemed in thousands of units. And the CEO felt that one of them was just testing to see if the method worked or not, but in the end they were not troubled by performance.