Gold wholesalers are starting to find new ways to expand their business into retail thanks to blockchain-based tokenization.The international precious metals trading company AgaBullion and the British fintech Aurus Technologies have signed a partnership to offer gold-backed tokens to the Turkish market.
The partnership will allow investors to use AurusGOLD. owning grams of gold accredited by the LBMAAs a gold-covered ERC-20 token in the Ethereum blockchain network, AurusGOLD (AWG) is coined and sold by precious metal traders with the blockchain-based solution from Aurus.
“Gold is the oldest decentralized financial system in the world”said the President of AgaBullion, Gökhan YÄ ± lmaz, “has developed into an established and globally recognized ecosystem”. Since the lack of underlying assets and high volatility make other cryptocurrencies unreliable, a physically secured token makes sense.
“We see great potential for digital precious metals”said the CEO of AgaBullion, Sarp Tarhanaci.TO “By partnering with Aurus, we can now use their blockchain platform to facilitate fractional ownership of gold in Turkey.”.
Turkey’s history of investing in physical gold, along with the high level of acceptance of crypto as an alternative way to protect wealth, makes the country an attractive market for digital goldAgaBullion told Cointelegraph.
Talk about the market opportunities AgaBullion stated that the COVID-19 lockdown in Turkey has made it impossible for citizens to access physical gold:
“People in Turkey are looking for something reliable and sustainable. Due to its centralized structure, it is not efficient for consumers to buy gold on online platforms from banks. For AgaBullion, buying a digital product is the most logical next step.” . “
Turkey is known as one of the largest gold markets in the worldwhere the precious metal is widely recognized as a form of wealth. The Aurus Business Development Director, Mark Gesterkamp, â ???? â ???? said:
“AgaBullion is an approved member of Borsa Ä ° stanbul and provides the infrastructure, market knowledge and the customer network so that we can further expand the usability of digital gold and other precious metals in Turkey.”
Aurus told Cointelegraph that AWG’s ultimate goal is to position it as a convenient way to own gold.The team does not want to compete with fiat currencies, but has set itself the goal of offering a reliable and stable alternative.
Blockchain technology enables an integrative and efficient system, the company said. “It makes precious metals accessible to the common people and not just the privileged, experienced investors who largely dominate the market today.”