Digix & Constant: Making Digital Gold Tokens (DGX) Available As Asset-backed Forms of Collateral
25 June 2019 — Digix proudly announces its strategic partnership with Ethereum-based peer-to-peer lending platform, Constant Foundation. The partnership enables Digix’s gold backed token, DGX, and DGD, DigixDAO’s governance tokens to be used as collateral on Constant’s network.
Strengthening peer-to-peer Liquidity With Practical Tokenized Asset Classes
By enabling DGX and DGD tokens on the Constant network, users can have a wider range of collateral that is secured on the blockchain for borrowing and lending. Particularly with DGX, where 1 DGX equals to 1 gram of investment grade gold, borrowers can be confident of making repayments as the value of their collateral is pegged to the price of real-world gold.
The partnership strengthens the use-cases for peer-to-peer lending and highlights the stability of Digix’s gold backed tokens (DGX) as practical, safe representations of collateral. DGX tokens are presently listed on internationally recognized digital exchanges including Bitfinex, KyberSwap and Uniswap, highlighting its reputability and liquidity in the global markets.
Digix is the world’s first asset tokenization company using blockchain technology to account for the provenance and verification of physical gold bars to issue DGX tokens on the blockchain. Every DGX token represents 1 gram of gold that is stored in accredited precious metals vaults in Singapore and Canada. DGX tokens are fully redeemable for investment-grade gold bullion.
Benefits Of Digix to Constant Users
Investors can deposit any amount of (cash, tokens) and choose an interest rate they want to earn. Borrowers put down collateral equal to 150% of the amount they want to borrow. Constant automatically matches the prospective investors and borrowers together when it detects a common interest rate indicated by the individual parties. The matching algorithm connects both parties together automatically through blockchain smart contracts.
Should borrowers default on a loan, the collateral is automatically sold to refund the investor. With the addition of DGX gold-backed digital tokens, Constant investors benefit from the stability of DGX’s value. Investors will be secured knowing that they are getting back their principle because it has been pegged to the price-stable DGX.
Borrowers that use DGX as collateral can be assured that their collateral submitted are safely stored on the blockchain. As this process is automatically processed with smart contracts, it is independent of external intervention. Borrowers will get their collateral back as long as they make their promised repayments. This entire process is facilitated on the Constant P2P Lending Platform.
“This is just the first step in the collaboration” said Duy Huynh, founder of Constant. “Both teams are working hard to list DGX as it is expected to be a token for investment in the near future. While Digix community is growing, we hope to bring on more campaigns to benefit Digix users”
“Through our partnership with Constant, we showcase the feasibility of harnessing gold more flexible as a means of value exchange beyond a traditional asset class. By allowing our digital assets to be used as collateral on Constant, we unlock new options to use digitally-registered gold, with the safety and accountability of blockchain. This process encompasses Digix’s spirit of pursuing new means of financial flexibility and deeper financial inclusivity for everyone,” said Shaun Djie, COO and co-founder of Digix.
Simply click on this link and begin to safely borrow USD or USD pegged tokens against the most reliable and time tested asset class — gold.
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