First Private Bank Joins Turkish Digital Asset Blockchain Network
Garanti BBVA, the second-largest private bank in Turkey with $104 billion of consolidated assets has confirmed that it will be the first and only private bank joining the Turkish Digital Asset Blockchain Network.
The Digital Asset Blockchain Network and crypto token (BiGA) project aim to transfer gold ownership freely online using gold-backed certified tokens while storing the physical metals in safe custody in the vaults of the Istanbul Stock Exchange. The network hopes to provide private and regulated digital gold markets available 24/7 using blockchain.
Garanti BBVA carried out the first blockchain transfers using the BiGA currency, 1 BiGA = 1 gram of gold, on the network working on three main transaction markets including issuance, repayment, and transfer. The system provides clearing, monitoring and reporting tools to aid all businesses running on the platform.
Digital gold markets using cryptocurrency tokens have been a long-running trial, with many other versions of digital gold already available on the market. Australian Perth Gold Mint introduced its own InfiniGold PMGT token, using the Ethereum blockchain earlier last year backing 1 ounce of gold to 1 PMGT.
Borderless gold and smarter methods of storage are certainly an appealing promise for investors, with 24/7 access and new security in the industry. But with any new technology, time and adoption can’t be so easy to judge. With gold having strong historical demand and markets, it continues to be one of the securest stores of value, as it is used in medicine, electronics, and jewelry around the globe. With adoption and users still forthcoming for new digital gold markets, it will be an interesting year ahead for gold-backed tokens, with multiple options and challenging industry with wealthy players.
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