Gold tokenization will be launched on Cardano through a partnership between founding partner EMURGO and Kinka Gold (XNK), a subsidiary of the Japanese neo-financial services company. EMURGO announced the latest collaboration in an official press release today. The report states that the Cardano blockchain ecosystem will soon integrate its first major gold-backed token, XNK, with EMURGO serving as a technology partner.
Kinka’s XNK token is backed by gold as each ounce represents premium Japanese gold that meets the highest LBMA standards. This gold is destined for use on the Osaka Exchange and stored in vaults around the world that are remote from bankruptcy. The launch of XNK on the Cardano blockchain ecosystem could be a game-changer. It will enable the creation of other real-world asset tokens (RWAs) and provide a gold-backed stablecoin that can be used in jurisdictions that do not allow traditional fiat-backed stablecoins.
Furthermore, the integration of gold into Cardano’s DeFi ecosystem could significantly increase its liquidity and use cases. Such a development could further accelerate the growth of the blockchain economy and solidify Cardano’s position as a leading blockchain platform.
Image: The Cryptonomist