Share this article
CoinShares, Blockchain Launch Gold Token Network on a Bitcoin Sidechain
Two years in the making and already backed by some $20 million in digitized gold, CoinShares announced the DGLD token Tuesday.
Updated Sep 13, 2021, 11:34 a.m. Published Oct 15, 2019, 8:01 a.m.
Digital asset manager CoinShares is putting gold on the bitcoin blockchain.
Working with wallet provider Blockchain and precious medal trader MKS (Switzerland) SA, the U.K.-based firm announced Tuesday a gold-backed network for trading tokens representing digitized physical gold, a project two years in the making.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
According to CoinShares, the network launches today with more than $20 million in gold held in a Swiss vault to back up its tokens. Each DGLD token is backed by 1/10th troy ounce.
CoinShares chairman Danny Masters said the product’s network security is based on the bitcoin state, with DGLD operating as a sidechain of the bitcoin network.
“DGLD combines the stability of the world’s most enduring asset, gold, with the security of the world’s most resilient network, Bitcoin," Masters said in a statement.
Built on blockchain firm CommerceBlock's Ocean sidechain platform, the DGLD network is notable in that it combines financial security – the bitcoin network's immutability and Swiss vault storage – while still facilitating low-friction trading, said Masters.
He continued:
“You can now have the peace of mind of Swiss vaulted physical gold, with the same convenience, but not the same layers of middlemen, as owning a gold ETF.”
CoinShares says the product is available for both retail and institutional investors and will be available in over 200 countries on Blockchain’s cryptocurrency exchange, The PIT.
UPDATE (15, October 14:00 UTC): This article was updated to reflect blockchain firm CommerceBlock's participation in the project.
Gold bar image via Shutterstock
More For You
L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below.
What to know:
2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns.
This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026.
More For You
Bitcoin's growing roadblock: The trendline from $126,000 limits gains
Trendline from record highs capped BTC's recovery attempt Monday.
What to know:
- BTC's recovery attempts on Monday ran into a glass ceiling - trendline from record highs.
- A potential breakout would confirm a bearish-to-bullish trend change.
Top Stories
