Cryptocurrency News

Gold-backed digital token to hit Turkish market after new partnership

Thanks to blockchain-based tokenization, gold wholesalers are beginning to find new ways to expand their business into retail. International bullion trading company Aga Bullion and United Kingdom-based fintech Auras Technologies have signed a partnership to offer gold-backed tokens in the Turkish market.

The partnership will allow investors to view their grams of LBMA-accredited gold through OrusGold. As a gold-backed ERC-20 token on the Ethereum blockchain, AurusGOLD (AWG) is mined and distributed by precious metals dealers using Aurus’s blockchain-based solution.

“Gold is the oldest decentralized finance system in the world,” said Agabulian President Gokhan Yilmaz, “that has become a globally recognized and established ecosystem.” He added that physically backed tokens make sense since the scarcity and high volatility of the underlying assets make other cryptocurrencies untrustworthy.

“We see a huge potential for digital precious metals,” said Sarp Tarhansi, CEO of Aga Bullion. “By partnering with Auras, we can now facilitate fractional ownership of gold in Turkey using their blockchain platform.”

Agabulian told Cointelegraph that Turkey’s history in investing in physical gold, as well as the high adoption rate of crypto as an alternative way of protecting wealth, make the country an attractive market for digital gold.

Speaking on opportunities in the market, Agabulian explained that the COVID-19-related lockdown in Turkey has made it impossible for citizens to access physical gold:

“People in Turkey are looking for something reliable and durable. Due to its centralized structure, it is not possible for consumers to buy gold from online platforms provided by banks. For Aga Bullion, the most logical next step is a digital product.”

Turkey is known globally as one of the largest gold markets, where the precious metal is widely recognized as a wealth. Mark Gasterkamp, ​​Aurus Business Development Manager, said:

“AgaBullion is an approved member of Borsa Istanbul, offering the infrastructure, market knowledge and network of customers for us to expand the utility of digital gold and other precious metals in Turkey.”

Orus told Cointelegraph that the ultimate goal of AWG is to establish it as a means of payment. The team does not want to compete with fiat currencies, but they aim to provide a reliable and stable alternative.

Blockchain technology allows for an inclusive and efficient system, the firm said. “This makes precious metals accessible to the masses, not just the privileged sophisticated investors who currently dominate the market to a large extent.”