Is On-Chain Gold the Future? Interview with Golteum
TL;DR Precious metals like gold and silver have traditionally been considered safe havens for investors. Thanks to blockchain technology, these assets can now be tokenized on platforms like Golteum. This allows investors to take advantage of the growth potential of both asset classes while diversifying their portfolios. Golteum leverages Chainlink’s services for its proof of reserves and has joined the Chainlink BUILD program to gain access to valuable resources, guidance, and technical expertise.
Investors have traditionally considered precious metals like gold and silver as safe havens.
Blockchain technology stands to make investing in these assets more accessible.
Golteum enables precious metal tokenization.
Precious metals, such as gold and silver, have long been considered safe havens for investors, representing a reliable store of value in times of economic uncertainty.
A prime example was in March 2020, at the start of the COVID pandemic, when gold traded at $1,592. Following the unprecedented pandemic monetary stimulus, gold surged and stood at $1,958 at the time of writing.
The performance of other precious metals was similar to that of gold. However, physically holding gold and other precious metals is cumbersome, involving logistical challenges and high costs.
Thanks to blockchain technology, this is changing. Thanks to its decentralized nature, the blockchain enables secure tokenization of assets like gold and silver. By tokenizing precious metals, these assets can be divided into smaller, easily tradable units, opening up opportunities for a broader range of investors.
To delve deeper into tokenization and its potential, DailyCoin talked to a representative at Golteum, a decentralized, blockchain-based platform for precious metals tokenization.
Can you explain what Golteum is and what it offers investors?
Golteum is a blockchain-based platform with the aim to remodel precious metals investing with tokenized versions while providing a seamless interface for investors to trade our real-world assets.
We combine the timeless appeal of gold, silver, and platinum with core features of blockchain and the crypto market, such as higher liquidity, accessibility, transparency, and the potential for additional yield.
Our platform integrates with the decentralized finance (DeFi) ecosystem, allowing our investors to explore more options with their tokenized precious metals.
Asset Tokenization Fuels Innovation in the Financial Industry: Golteum
The conversation shifts to why investors should consider switching to tokenized gold on platforms like Golteum. The representative articulates how Golteum innovatively combines the benefits of precious metals and cryptocurrency trading into one interface.
Most investors know they can trade assets like precious metals on traditional markets. Why should they switch to buying tokenized gold on platforms like Golteum?
Investors should consider switching to buying tokenized gold on Golteum because we innovatively combine the benefits of precious metals and cryptocurrency trading into one interface. Our platform allows investors to take advantage of the growth potential of both asset classes while diversifying their portfolios.
Tokenized gold and other precious metals on Golteum will further strengthen the narrative for continued blockchain adoption and make these assets accessible and easily tradable for a wider range of investors who the barriers of the traditional market may have deterred.
Do you expect more institutions and investors to switch to trading tokenized assets in the near future?
Yes, we imagine more institutions and investors will continue to switch to trading tokenized assets in the future as they allow more functionality than what’s offered in the traditional market. As the blockchain has evolved over the years, we have seen an increasing demand for not just alternative investment options but better opportunities for investing and trading.
Decentralization and Security: Golteum’s Approach
Addressing the concerns about decentralization and security in the crypto space, the representative discusses the measures Golteum takes to ensure the security of users’ assets.
Golteum is not the only platform that offers asset tokenization out there. What makes you different from your competitors?
Several gold-backed crypto tokens have emerged since tokenization became a thing on the blockchain, but we do not consider them truly decentralized because it leaves room for a point of failure. Golteum is unique in its tokenization process and gold-backed token issuance. We offer full ownership of precious metals via backed NFTs with 24/7 on-chain tracking supported by Chainlink.
Golteum enables the tokenization of real-world assets through a decentralized network of precious metals suppliers. Accredited entities can store gold, silver, or platinum in connected vaults, with provenance and ownership validated by custodians and external auditors.
The decentralized nature of Golteum’s ecosystem ensures no control or influence over the underlying precious metal deposits, providing reliability and avoiding any points of failure.
Crypto platforms are often a target of hacks. What security measures do you take to ensure the security of users’ assets?
At Golteum, we prioritize the security of our user’s assets, and our platform is powered by Fireblocks, a leading Web3 institution-grade infrastructure provider. We can protect user funds and transactions from possible dangers such as security breaches, theft, and unauthorized access using Fireblocks’ cutting-edge security methods.
Fireblocks’ experience in secure key management, safe asset transfer, and secure storage solutions strengthens our platform’s overall security posture, giving our users peace of mind and confidence in the security of their assets.
We demonstrate our dedication to upholding the highest security standards and providing a safe environment for our users’ valuables by working with Fireblocks.
The discussion then moves to Golteum’s use of the decentralized oracle network Chainlink. The representative details how Chainlink allows Golteum to implement a real-time auditing system that verifies the consistency of its backed token supply against reserves.
You leverage Chainlink’s services for your proof of reserves. Can you explain how this works?
We are collaborating with Chainlink, a renowned decentralized oracle network, and this allows us to implement a real-time auditing system that verifies the consistency of our backed token supply against reserves.
Since precious metals are not on-chain assets, Chainlink serves as the bridge to external data sources to not just our reserves but real-time information with precious metal prices as we look to enable other DeFi possibilities.
We also believe it adds an additional layer of trust to our token issuance mechanism having our token supply verified by the tamper-proof Chainlink Oracle network.
Golteum recently joined the Chainlink BUILD program, which helps early-stage companies get off the ground. How has this helped your team, and what are your expectations?
For us at Golteum, this is an excellent start to our very promising solution, and we believe the program would help accelerate our growth as an early-stage company.
We hope to gain access to valuable resources, guidance, and technical expertise from Chainlink’s experienced team. The program has allowed us to network with other top companies and individuals in the blockchain landscape.
Overall, joining the BUILD program is something we are really excited about, and we cannot wait to unleash our market offerings and proceed to launch.
On the Flipside
Investor and gold bull Peter Schiff argues for tokenized gold and silver as an alternative to the government’s fiat currency.
On the other hand, Bitcoin maximalists like Michael Saylor consider gold to be an inferior version of Bitcoin.
Emerging use cases like asset tokenization help bring crypto skeptics on board with blockchain technology.
Read more about precious metals in crypto investing:
Global Interest in Gold-Backed Digital Assets is Expanding
Read more about Coinbase buying its debt at a discount:
Coinbase $64.5M Debt Buyback: Positive Signal for Investors?