Global bullion trading firm AgaBullion and fintech entity from the UK Aurus Technologies has reportedly formed an alliance, to roll out gold-backed tokens in the Turkish market.
Specifically, blockchain-powered tokenization has reportedly provided significant assistance to Gold wholesalers, to widen the scope of their offerings to retail.
The new collaboration will reportedly allow investors to hold grams of LBMA-accredited gold through AurusGOLD.
As a gold-backed, Ether-based ERC-20 token, the minting and distribution process of AurusGOLD (AWG) are reportedly handled by precious metals dealers, via the assistance of Aurus’ blockchain-powered tool.
Per AgaBullion chairman Gökhan Yılmaz, gold is the longest-running DeFi system globally, with an ecosystem having worldwide recognition and establishment, and with the insufficiency of underlying assets and high volatility leading to the unreliable nature of different virtual coins, the concept of a physically-backed token is appropriate.
“We see a huge potential for digital precious metals. By partnering with Aurus, we can now use their blockchain platform to facilitate fractional gold ownership in Turkey.” Head of AgaBulllion, Sarp Tarhanaci, reportedly remarked.
Regarding the available opportunities across the market, AgaBullion reportedly believed that the lockdown situation in Turkey caused by the global pandemic, a physical access to gold is not viable.
“People in Turkey are looking for something reliable and sustainable. Due to its centralized structure, it’s not efficient for consumers to buy gold from online platforms provided by banks. For AgaBullion, the most logical next step is a digital product.”