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Hong Kong Gold Exchange Launches Goldzip Tokens Backed By $300 Million Reserve

Hong Kong Gold Exchange Launches Goldzip Tokens Backed By $300 Million Reserve

May 13, 2019


A new digital token backed by $300 million worth of gold guaranteed by the Chinese Gold and Silver Exchange (CGSE) has just been released in Hong Kong. Similar to other cryptocurrencies, the new Goldzip tokens will be utilizing highly secure blockchain technology.The new instrument will be used to trade gold, which is much safer than actually using the precious metal. Blockchain technology is currently tamper-proof and each transaction is "seen" by all the parties involved through a public ledger. This helps minimize fraud and digital hacks.


The $300 million worth of gold was audited by participating members. Once that was completed, the gold inventory was stored inside a vault at the local gold exchange. The auditing process is necessary prior to issue the Goldzip digital tokens, as each piece will directly be linked to one gram of gold on the reserve.According to the CGSE's executive director, Calvin Ng, the goal of the new tokens is to allow its owners to make easy and secure transfers and payments with gold. The process will be using blockchain ledger technology, which means that each transaction is full tracked through the blockchain ledger.


Based on the current value of 1,000 taels of gold, which currently stands at around $1,543, each digital token will have a value of around $40.77 or HK$320. When the tokens are officially released to partners, traders should be able to buy and sell the tokens at different cryptocurrency exchanges as well as on over the counter brokers. The tokens will also be available for trade on traditional gold retailers across the country.Transaction fees will also be kept at a minimum, with each transaction costing only 0.001 Goldzip tokens. Ng revealed that over 30,000 merchants across Southeast Asia have already lined up to start using the new tokens. All 171 members will be able to buy and sell the tokens, with holders also able to exchange the tokens for real gold at participating outlets.