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Meld partnered with Algorand and gold industry to tokenize gold asset

By Inkarias - 2020-04-03

Several known companies in the crypto sphere issued stablecoins backed by physical gold. Brisbane-based Meld announced late Tuesday that it had partnered with Algorand and the Australian gold industry to integrate the supply chain of gold on blockchain. Algorand is, according to Meld and at the opposite of Ethereum, best-suited to connect all components of the gold marketplace: bringing suppliers, dealers, and buyers directly to where they want to trade their assets

“At the core of the Meld ecosystem is the partner network,” the director of Meld Gold, Michael Cotton, told Decrypt. “Unlike other solutions, Meld is developing an industry solution that interconnects the entire supply chain, creating efficiencies such as decreased costs, increased transaction speed and greater liquidity.

A major improvement for transactions

According to Cotton, what sets Meld apart from other players in the space is that consumers will be able to transact over the counter and online with gold dealers directly. Businesses, either big and small, will be able to join the partner network to refine and sell their gold. Furthermore, traditional bullion investors and new users will be able to tap members of the partner network to withdraw and have their gold delivered to them on demand. With the gold industry on the Algorand blockchain, the companies expect users will be able to find buyers and sellers quicker, trade instantly, and track the origins of their gold all from a digital wallet or in person with a partner dealer. Despite the support from Algorand and some members of the Australian gold industry, Meld faces significant challenges.

Nonetheless, Peter August, the CEO of the Melbourne Mint, remains optimistic about the project: “Many companies have tried to create their own version of gold-backed tokens, but what Meld is doing is new: they’re using blockchain technology to not just emulate but improve the actual gold market.”

More details at https://www.algorand.com