A new partnership allows Turkish investors to purchase recognized grams of gold as ERC-20 tokens.
Gold wholesalers are starting to find new ways to expand their business into retail, thanks to blockchain-based tokens. International bullion trader AgaBullion and UK-based fintech company Aurus Technologies have signed a partnership to offer gold-backed tokens in the Turkish market.
This partnership will see investors own LBMA-accredited gold through AurusGOLD. 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. Mr. Gökhan Yılmaz, president of AgaBullion said
“Gold is the oldest decentralized financial system in the world. It has become a globally recognized and established ecosystem, since the lack of the underlying asset and high volatility render cryptocurrencies unreliable, a physically backed token is very meaningful.”
AgaBulllion CEO Sarp Tarhanaci stated:
“We see huge potential for digital precious metals. By partnering with Aurus, we can now use their blockchain platform to facilitate fractional gold ownership in Turkey.”
Turkey’s history in investing in physical gold, coupled with its high adoption rate of cryptocurrencies as an alternative to wealth protection, make the country an attractive market for gold. digital.
Speaking about the opportunity in the market, Mr. AgaBullion explained that the COVID-19 lockdown in Turkey prevented people from accessing physical gold:
“People in Turkey are looking for something reliable and sustainable. Due to the centralized structure, consumers cannot buy gold from online platforms provided by banks. For AgaBullion, the most logical next step is a digital product.”
Turkey is known as one of the largest global gold markets, where the precious metal is widely recognized as a form of wealth. Aurus Business Development Manager Mark Gesterkamp said:
“AgaBullion is an approved member of Borsa İstanbul, providing the infrastructure, market knowledge and customer network for us to further expand our use of digital gold and precious metals. other in Turkey.”
Aurus shares that AWG’s ultimate goal is to position it as a means of payment. The team does not want to compete with fiat currencies, but they want to provide a reliable and stable alternative.
The company says blockchain technology allows for a comprehensive and efficient system to be created.
“This makes precious metals accessible to ordinary people, not just the privileged connoisseurs that dominate much of the market today.”
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