Wednesday, October 21, 2020
Report HelloGold launches Gold-Backed Tokens; exploring other asset-backed digital coins

HelloGold launches Gold-Backed Tokens; exploring other asset-backed digital coins

The industry’s first Shariah compliant gold digital app has released its virtual Gold-Backed Tokens (GBT) to the public following the successful resale of its HelloGoldTokens in October.

HelloGold’s GBT is one of the very few asset-backed digital tokens in the market — it is redeemable for physical gold in increments of one gram and acts as a stablecoin, meaning the tokens may be used as a hedging tool to manage volatility. In fact, the firm recently partnered with cryptocurrency crowdfunding platform FundYourselfNow enabling its users to hedge part of their raise into GBT at a discounted rate.

Offering the tokens to the public is only the beginning. HelloGold, which recently concluded a Series A round at a post-money valuation of US$12 million, is mobilizing resources to drive expansion across multiple fronts: the Kuala Lumpur-based start-up recently made six new hires (expects to double the team next year), has revived its blockchain development which was put on hold in preparation for its ICO a few months ago and is working on introducing new products including a trustee wallet, gold-backed financing and specific instruments utilizing GBT for the corporate market.

IFN Fintech also understands that the start-up is exploring using other assets (including silver) to back digital tokens using the same infrastructure as GBT.

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