Gold wholesalers are starting to find new ways to expand their businesses to retail, thanks to blockchain-based tokenization. International bullion trading company AgaBullion and United Kingdom-based fintech Aurus Technologies have signed a partnership to offer gold-backed tokens in the Turkish market.
The partnership will see investors own grams of LBMA-accredited gold via AurusGOLD. As a gold-backed ERC-20 token on the Ethereum blockchain, AurusGOLD (AWG) is minted and distributed by precious metals dealers using Aurus’ blockchain-based solution.
“Gold is the oldest decentralized finance system in the world,” AgaBullion chairman Gökhan Yılmaz said, “It has become a globally recognized and established ecosystem.” He added that since the lack of underlying assets and high volatility renders other cryptocurrencies unreliable, a physically-backed token makes sense.
“We see a huge potential for digital precious metals,” AgaBulllion CEO Sarp Tarhanaci stated. “By partnering with Aurus, we can now use their blockchain platform to facilitate fractional gold ownership in Turkey.”
Turkey’s history in investing physical gold, along with