Introduction
The Klaytn Foundation, a dedicated organization that aims to expand the Klaytn ecosystem, has revealed that Creder, one of its governance council members, will introduce a tokenized gold offering known as Gold Pegged Coin (GPC) in January. Creder will also launch Goldstation, a decentralized finance platform designed to convert physical gold into GPC tokens.
Creder's Gold Pegged Coin (GPC)
Creder, a South Korean startup specializing in asset digitization, is venturing into the gold tokenization business. The company will soon release a 1:1 backed gold token called Gold Pegged Coin (GPC). This initiative marks the first tokenized gold project launched outside of Ethereum. Creder has chosen Klaytn, a blockchain platform known for its low fees and scalability, as the foundation for this endeavor, aiming to democratize access to this innovative tool. Unlike other tokenized gold options like Tether Gold (XAUT), which are exclusive to Ethereum, GPC will be available on the Klaytn blockchain.
The Launch of Goldstation
In addition to GPC, Creder has announced the launch of Goldstation, a decentralized finance tool that enables users to digitize their gold bullion using non-fungible tokens (NFTs). The issuance of these gold NFTs will take place on another platform called The Mining Club, which will collaborate with Goldstation to mint GPC by utilizing the NFTs as collateral.
Decentralized Finance Opportunities
According to the Klaytn Foundation, the introduction of Goldstation and GPC opens up new opportunities in the decentralized finance space. Users will have the ability to leverage tokenized gold as collateral, generating revenue and exploring various financial possibilities. Initially, Goldstation and GPC will only be accessible to South Korean users. This limitation is due to the Korea Gold Exchange Digital Asset (KORDA) acting as the custody provider for the platform.
Future Expansion to Include Other Metals
While the initial focus of Goldstation will be on the tokenization of gold, Creder has plans to expand its platform to include other metals in the future. The Klaytn Foundation has expressed its intention to extensively broaden the tokenization of real-world assets (RWA), beyond just gold.
Gold Tokenization Trend
Gold tokenization has gained significant attention in financial markets, with multiple institutions launching initiatives in this domain. In November, HSBC unveiled a gold tokenization platform targeting London markets, with a focus on a market worth $525 billion.
We would love to hear your thoughts on GPC and Goldstation. Share your opinions in the comments below!
Frequently Asked Questions
How Does Gold Perform as an Investment?
The price of gold fluctuates based on supply and demand. Interest rates are also a factor.
Due to their limited supply, gold prices fluctuate. Additionally, physical gold can be volatile because it must be stored somewhere.
What is the best precious metal to invest in?
This depends on what risk you are willing take and what kind of return you desire. Gold has been traditionally considered a haven investment, but it's not always the most profitable choice. You might not want to invest in gold if you're looking for quick returns. If you have the patience to wait, then you might consider investing in silver.
If you don’t want to be rich fast, gold might be the right choice. If you want to invest in long-term, steady returns, silver is a better choice.
What is a Precious Metal IRA (IRA)?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These rare metals are often called “precious” as they are very difficult to find and highly valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
Bullion is often used to refer to precious metals. Bullion refers actually to the metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
You can invest directly in bullion with a precious metal IRA instead of buying shares of stock. This ensures that you will receive dividends each and every year.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. You pay only a small percentage of your gains tax. Plus, you can access your funds whenever you like.
Statistics
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads and Example. Risk Metrics
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement plans
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
3 Ways to Invest in Gold for Retirement
It is crucial to understand how you can incorporate gold into your retirement plans. If you have a 401(k) account at work, there are several ways you can invest in gold. You might also consider investing in gold outside your workplace. For example, if you own an IRA (Individual Retirement Account), you could open a custodial account at a brokerage firm such as Fidelity Investments. If precious metals aren't your thing, you may be interested in buying them from a dealer.
These are three easy rules to remember if you invest in gold.
- Buy Gold with Your Money – You don't need credit cards, or to borrow money to finance your investments. Instead, put cash into your accounts. This will protect your against inflation and increase your purchasing power.
- Physical Gold Coins – Physical gold coins are better than a paper certificate. It's easier to sell physical gold coins rather than certificates. You don't have to store physical gold coins.
- Diversify your Portfolio. This is how you spread your wealth. You can invest in different assets. This reduces risk and allows you to be more flexible during market volatility.
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By: Sergio Goschenko
Title: Creder Launches Gold Pegged Coin (GPC) and Goldstation Tokenization Platform
Sourced From: news.bitcoin.com/south-korean-tokenization-startup-chooses-klaytn-over-ethereum-for-gold-nfts/
Published Date: Fri, 05 Jan 2024 11:00:34 +0000
