CoinShares’ DGLD Consortium Allows Investors to Redeem Gold Tokens for Physical Bullion


CoinShares, one of the world’s largest digital asset managers and investment firms, today announced that its DGLD consortium in partnership with Blockchain, the world’s most popular crypto wallet, and MKS (Switzerland) SA, part of the world’s most trusted gold group, that it will enable DGLD tokens representing allocated physical gold to be used to pay for gold bars and coins on GOLD AVENUE, the official online retailer of the MKS PAMP GROUP.

Launched in October 2019, DGLD is a digital asset token that provides gold investors with convenience and security; without the middlemen and has $27.5M of tokens in circulation. The token represents digital proof of ownership of ‘allocated gold’ physically held in a Swiss vault and is secured with the bitcoin blockchain. This new format of gold ownership renders gold to be both digitally usable and physically redeemable. With the partnership between DGLD and GOLD AVENUE, precious metals buyers now have the ability to bridge between digital and physical investments via a user-friendly payment gateway, using DGLD to have physical gold delivered to them via GOLD AVENUE.

Daniel Masters, Chairman of CoinShares commented on the news, “DGLD offers peace of mind to our customers, combining the security of BTC with the stability of gold. Customers value the flexibility DGLD provides, having the ability to switch between the physical and digital ownership. Settling purchases in DGLD on GOLD AVENUE is a way to achieve this with ease and fluidity.”

At CoinShares, one of our core theses has been that as the world changes, so does bitcoin’s place in it, and nowhere has this been more evident than in the last six months. Gold has long been trusted as a hedge to geo-centric economic and political crisis as well as inflationary monetary policy, and in this market cycle, Bitcoin has also been placed squarely in this narrative of “sound money.” This is evidenced by CoinShares’ XBT Provider product line recently reaching the milestone of $1B in AUM in its crypto-asset tracking ETPs.

CoinShares supports the digitization of assets across financial services. As echoed by Jay Clayton, Chairman of the SEC in recent comments, regulators around the world are increasingly open to tokenization of assets, including ETFs. Our DGLD consortium is part of a broader effort to bring efficiency to the commodities and precious metals space. Already CoinShares is innovating on index products with the CoinShares Gold and Cryptoassets Index (CGCI), an EU BMR compliant index that provides risk-managed exposure to cryptoassets by combining the high volatility of cryptoassets with the low volatility of gold, and the low correlation between the two.