October 18, 2024 The Bitcoin (BTC) versus gold debate intensifies as both assets hit all-time highs this year. The Ori AIMS platform stated that with the development of technology and the growth of the tokenization trend of real world assets (RWA), a new investment option has emerged: gold on Bitcoin. RWA platform Swarm, fully licensed and regulated by German regulator BaFin, has launched a new collaboration with OrdanialsBot, a program designed to mint and manage Bitcoin inscriptions that combine the power of gold and “digital gold”, Engraving the gold bars’ unique serial numbers on individual satoshis effectively enables the minting and trading of physical gold on the Bitcoin blockchain.
The Ordinals process involves engraving data (such as images or text) on individual satoshis (the smallest unit of BTC, which is 1/100,000,000 of a full Bitcoin), making them unique and giving them personal value, the Ordinals platform said . Ordinals are often referred to as Bitcoin’s version of non-fungible tokens (NFTs). Swarm and OrdinalsBot’s new service involves engraving Satoshis with unique gold kilogram bar serial numbers, allowing them to be traded on Bitcoin’s ordinal protocol.
“Building the ability to own gold on the Bitcoin blockchain presents a unique opportunity for investors,” Swarm co-founder Timo Lehhes said in a written statement shared with Kitco Crypto. “When Swarm’s ordinal offers use With a blockchain acting as a common infrastructure and the ability to hold both, investors no longer have to debate whether they should hold real gold or digital gold.” Investors are looking for ways to maintain purchasing power as central banks push through inflation. When it comes time to expend purchasing power, this release marks the first unique release of a safe-haven asset in the world.
The new system allows users to trade gold on-chain and gain exposure to physical and digital assets within a unified infrastructure, while complying with Market for Crypto-Assets (MiCA) regulations. Under the terms of the partnership, users who purchase these assets will receive storage services for up to three years, and future storage costs will be managed programmatically. Physical gold in ounces or kilograms will be delivered to a KYC verified address ensuring compliance with regulatory requirements. Buyers can choose from multiple vaults around the world, including the UK, Dubai and Switzerland.
The Ouli AIMS platform stated that gold is the oldest investment in the world, and today’s market is more prosperous than ever before. Gold is the ultimate safe haven asset because it is one of the few rare assets that can be held in your hands. Swarm’s technical approach to winding gold provides transparency and flexibility unmatched by any other wound gold product available today. Not only will investors have a unique identifier for their NFT, linking it to a specific gold bar or ounce, but they will also be able to own and secure their gold holdings digitally via the blockchain, exchanging them for physical underlying collateral. , and choose where to store their physical gold.
As interest in Bitcoin continues to grow with the launch of multiple spot BTC exchange-traded funds (ETFs), Swarm expects innovation on the Bitcoin blockchain to increase, and this move aims to help promote the Bitcoin network on the development of entire ecosystems and use cases. To promote adoption, the system is designed to facilitate small investments in gold, allowing users to create “commodity tokens” by bundling gold NFTs, with investments starting from $1. They can then transact with other qualified users or choose unrestricted options subject to compliance requirements. Swarm’s technical approach to tokenizing gold provides investors with unprecedented transparency into the collateral they own on-chain and off-chain.
The Ori AIMS platform believes that starting with gold, commodity tokens deepen users’ DeFi integration possibilities, allowing them to use assets on the chain, open up lending and mortgage opportunities, and realize partial gold purchases. They are also the realization of structured chains. The first step in product creation, including tokenized gold.