What Is The Best Gold-Backed Cryptocurrency? (2023 List)

Select and compare which is the best Gold-Backed Cryptocurrency list based on this comprehensive analysis of cryptocurrencies backed by Gold:

Is there crypto backed by gold? Yes, the idea of gold-backed cryptocurrencies came into existence in 2017, as Bitcoin was in line with the price of gold.

The majority of gold-backed cryptocurrencies can be described as derivatives that allow you to trade, purchase, and the holding of physical gold anywhere and at any time.

They take away the inconveniences of transport and transferability issues, as well as the illiquidity and volatility associated with dealing with physical gold.

Modern tokens that are backed by gold provide access to the market for gold futures. They are built upon blockchain technology.

As digital cryptocurrencies have gold backing, the majority of gold-backed cryptocurrencies can be converted to physical gold. They are able to be exchanged via crypto exchanges for fiat or other cryptocurrencies.

They are gold-backed in various proportions based on the project. For instance, 1 kilogram of gold or a certificate will back 1 token.

This article will explain gold-backed cryptocurrencies and how they work. It also lists the most popular cryptos that have this type of backing.

What is The Best Gold Backed Cryptocurrency

Gold-backed cryptocurrencies are similar to stablecoins which are supported by physical gold.

If the value of a cryptocurrency token has been pegged to the value of gold at the moment that it has lower volatility when compared to other well-known cryptocurrencies.

While these fiat-backed cryptocurrencies are experiencing a high rate of adoption with rapid growth the gold-backed cryptocurrencies are also gaining their own distinct space in the minds of crypto investors.

The idea of gold-backed cryptocurrencies came into existence in 2017 when Bitcoin stood in line with the price of gold. It sparked interest among investors to choose something that was as valuable and stable as gold.

  • Gold-backed cryptocurrencies are derivatives that’s value is derived from the price equivalent of gold. The backing of gold is used to connect an asset that is derived to an actual asset and in turn, prevent price changes, as is the case with the majority of cryptocurrencies.
  • The amount of gold that is used to fund the cryptocurrency must be stored in reserves of gold, for example through banks or other third-party institutions, referred to as custodians.
  • The nature of the backing, however, differs from one crypto to the next. One token of crypto is equivalent to one unit of gold. Some cryptos are backed by 1:1. 1:1 which means that 1 token equals 1 gram of gold.
  • Investors who invest in the token benefit from higher returns due to the gold price. Investors are able to redeem tokens in exchange for gold.
  • A majority of gold-backed tokens are available as ERC-20 normal tokens however not all. They are sold via crypto exchanges like the most popular cryptocurrencies.
  • The primary advantage is that, unlike gold, they’re digital and are able to be divided into smaller units, portable and easily transferable to a different party, and also cost-effective for every level of investor.
  • The majority of them have inadequate liquidity due to their restricted access to investors due to the low level of trade through crypto exchanges. Other issues include dependence on the central government and custodians in order to keep gold in custody, which defeats the purpose of decentralized cryptocurrencies.
  • Gold-backed cryptocurrencies are used by investors to protect against the volatility of crypto. They utilize them to protect their monetary value against the weak fiat currency and regulations-bound stablecoins.
  • It is essential to confirm the claims of the backer, or else the project may be a fraud. In the majority of cases, the project is transparent regarding the backing and can be verified by independent audits by third parties and custodians.
  • The amount of gold used to back the coins should be in line with the number of coins in circulation or available. We can verify the token quantity in circulation for each project using an electronic token contract that is on the blockchain.

Is Bitcoin a Gold-Backed Cryptocurrency?

There is no such thing as a fiat currency. Bitcoin isn’t secured by precious metals, gold, or even fiat currency. Its value is derived from many factors, such as its decentralized nature, its usability, technology, and demand.

How Do Gold-Backed Cryptocurrencies Work?

Like the gold ETF that is issued by an issuer and is dependent on an established custodian holding physical gold. A cryptocurrency is also managed by a centrally-owned issuer. It could take the form of tangible gold bars, gold coins, gold certificates, or even gold-related securities and also any other form of bullion made from gold. The token is then used as evidence of ownership of an underlying asset.

Certain associated with gold cryptocurrencies have been pegged to the value of gold. Other gold-backed tokens or coins permit exchange into actual gold. If that the coin or token lets the owner of gold-backed crypto exchange their cryptocurrency for a certain amount of gold by handing over their gold coins to the issuer. If that happens it could however be subject to counterparty risk.

It is possible to exchange your token and get physical gold from the custodian or storage facility. In contrast to other cryptocurrencies that are backed by gold, this one has an actual physical issue. In theory, when the gold-backed cryptocurrency is redeemed, it is destroyed and taken from circulation.

The majority of gold-backed cryptocurrency exists as a token on a publicly-accessible blockchain which is the main reason for them working with Ethereum via the ERC-20 token standard. However, different gold-backed crypto tokens are on other blockchains, including Algorand.

Typical Cryptocurrency vs. Gold-Backed Cryptocurrency

The majority of cryptocurrency doesn’t have backing from any other source. This is why many investors are skeptical of crypto. One of the main reasons against Bitcoin is the fact that its value is not tangible and is not backed by anything that has physical worth. This is the reason why gold-backed cryptocurrencies are able to enter the picture due to their relationship with physical gold.

Due to the relationship with physical gold underlying Some investors feel more secure investing in cryptocurrency supported by it. In the end, gold has a longer time frame in comparison to cryptocurrency as a source of value. Also, price changes are more easily understood because of their long-standing time.

While the fundamental fundamentals might be simpler to grasp, it’s worthwhile to note that the price of a cryptocurrency supported by gold will eventually track the value of gold. If gold’s price does not go up in value in price, you shouldn’t expect the price of a gold-backed cryptocurrency to do so.

What is the Best Gold-Backed Cryptocurrency List?

Here are the best gold-backed cryptocurrencies:

This article will provide you with the top gold-backed cryptocurrencies which you can purchase or keep for stability.

Here is a listing of most-well-known cryptocurrencies supported by gold:

  • Tether Gold (XAUT)
  • Gold Coin (GLC)
  • Perth Mint Gold Token (PMGT)
  • PAX Gold (PAXG)
  • AurusGOLD (AWG)
  • DigixGlobal (DGX)
  • Cash Telex (CTLX)
  • Meld
  • CACHE Gold (CGT)
  • Kinesis Gold (KAU)
  • META
  • AABB Gold Token (AABBG)
  • Anthem Gold

As the concept of a gold-backed cryptocurrency starts to take off, it’s the right time to examine some of these tokens/coins with a closer appearance. Following cryptocurrencies are the ten most popular:

Tether Gold (XAUT)

Website: https://www.gold.tether.io

The world’s most renowned stablecoin, Tether has jumped into the gold-pegged cryptocurrency market to help drive an upcoming wave of investment disruption. Tether Gold was first introduced in the year 2020 and has since grown to a market cap of USD 160 million. With gold deposits in Swiss vaults, Tether Gold provides a variety of services that allow users to trade their crypto in physical gold to exchange it for cash. Investors can determine your gold using the address of their wallet that holds the AUXt.

Features:

  • Users must create an account at app.tether.to verify it for the purchase of tokens. All transactions are in US dollars.
  • 1 XAUt token is equivalent to 1 Troy Fine ounce of gold in the back of a London Good Delivery bar
  • Tokens can be transferred from one non-chained Tether wallet to another wallet.
  • The token is contained in the ERC-20 token that is stored in an Ethereum-based wallet as well as a TRC20 token in TRON. TRON blockchain.
  • Tokens can be redeemed back into physical gold for users, and there is a specific minimum amount in XAUt coins. Gold can be delivered to any place in Switzerland
  • Tokens can also be converted into gold, and the buyer can ask for the token to be sold and then receive cash out of the proceeds of the sale

Gold Coin (GLC)

Website: https://goldcoin.com

GoldCoin peer-to.-peer cryptocurrency is a movement for economic decentralization and freedom of trade. Gold Coin is an ERC-20 coin that was created by the company Digital Gold LTD. The cryptocurrency was developed and maintained by a team of volunteers who are committed to the development in the pursuit of freedom economics.

While holding GLC holders can benefit from special features, such as speedy confirmation of two minutes which makes it the fastest transaction of any gold-pegged token.

GLC also provides its own Goldcoin Wallet for any gold bought, and there aren’t charges for transactions, making it very simple for investors to purchase and keep their gold.

The backing amount to 1000 GoldCoin per ounce of gold. This means it is less volatile than other cryptocurrencies that aren’t pegged to any asset that is stable.

It also has the benefits of a digital asset physical gold. It is easy to divisible as well as portable and transportable. The token can be converted back to physical gold at any point.

It is also possible to convert it into fiat. GoldCoin is available at Exchanges as well as on the website of the company.

Additionally, you can also purchase GLC through a network of ATMs.

Features:

  • Every GoldCoin token represents 1/1000 of one ounce of gold.
  • The platform scales using off-chain and on-chain scaling methods.
  • It’s mind-based by its proof of work algorithm, as with Bitcoin.

Perth Mint Gold Token (PMGT)

Website: https://www.perthmint.com

It is the Perth Meant Gold Token is an equivalent tokenization of the GoldPass certificate in an amount of 1:1 and is supported by physical gold in the ratio of 1:1. The certificates can be traded for tokens or tokens, fiat, and certificates in digital asset trading platforms.

The Perth Mint Gold Token Also known as PMGT is one of the most trusted gold-pegged cryptocurrencies on the market. It is also certified by Australia’s Australian government.

Western Australia’s Perth Mint, the digital gold is secured with real gold blocks. The company also offers gold certificates that can be used as proof of every purchase.

In addition, PMGT is famous among investors for its accessibility to simple storage, lower charges for insurance and custody, and a competitive and cost-effective alternative.

Physical gold is held at Perth Mint’s central banking. This is because the Government of Western Australia guarantees the gold.

The token is similar to other cryptos that are convertible and divisible. It is able to be converted for gold or to other fiat equivalents anytime.

The fiat connection opens up liquidity, even for the largest transactions. Crypto doesn’t have storage, transaction, or management costs. This makes it among the most popular and cost-effective gold-backed tokens or gold-backed cryptocurrencies.

Features:

  • The token is redeemable in various Perth Mint products, from an incredibly small 1-ounce cast bar to a 400-ounce accredited LBMA London Good Delivery bar
  • The Earth Meant publishes all balances of GoldPass accounts, which means that anyone can check that the backer of the token by using gold
  • 1 PMGT equals a one-ounce GoldPass certificate as well as 1 ounce of gold that is physically present.
  • Tokens are traded through an exchange called the over-the-counter gold market XAU

PAX Gold (PAXG)

Website: https://www.paxos.com

Paxos Gold is a gold-backed cryptocurrency created by Paxos the company which developed itBit, a Singapore-based cryptocurrency exchange dubbed itBit. Paxos is a licensed and authorized custodian under an official charter approved through the New York State Department of Financial Services and is one of the most popular ways to buy gold using crypto.

It was launched in the year 2000 by Pax Gold, a trusted American company The PAXG token is one troy ounce of a London Right Delivery bar of gold.

The launch of PAXG was in 2019. PAXG is located in Brink’s vaults. This is one of the warehouses that are part of the London Bullion Market Association.

The people who created the gold-pegged cryptocurrency invented PAXG token to make purchasing gold simple and, most important, it is digitized. With the purchase of PAXG the token holders are the sole owners of the gold and are able to utilize it to trade.

The ERC-20 token lets users access gold through traditional markets. With the token users can hold or transfer, store and even speculate with gold quicker and easier than the physical market. The users can also subdivide their gold holdings, which is significantly more difficult with physical gold.

Paxos Gold can also be traded as a futures trade, where you can buy annual as well as quarterly futures contracts with certain exchanges.

Features:

  • Supported with one Troy ounce of pure gold in an approximate ratio of 1:1
  • There is no fee for custody to hold tokens. It is a gold ETF that ranges between 19 to 40 basis points annually. Gold coins in physical form and other items can range between 10 and 100 basis points annually. Gold that is not allocated can be between 1 and 10, basis points per annum and other gold-based tokens can be as high as 100 basis points annually. If you own an LBMA 400 Troy ounce gold bar There is an annual fee of between 5 and 25 basis points per year.
  • Paxos Gold allows for instant settlement
  • PAXG gives access to some of the biggest gold ETFs as well as other gold tokens
  • Redeemable to purchase physical gold
  • Regulated by the NYDFS
  • Available on all major exchanges

AurusGOLD (AWG)

Website: https://aurus.io/

AurusGOLD also called AWG is an insured gold token that is collateralized by 1 gram of 99.99% gold from LBMA certificate refineries. The long-lasting digital gold token is a viable option to use as a substitute for insecure fiat currencies or as the most efficient method to invest in gold. AWG is produced by gold traders who can arbitrage between AWG and bullion markets, keeping the cost of AWG in tune with the spot price of gold.

Features:

  • Small amounts of 1 gram make accumulation easy
  • It is possible to convert it into physical gold using LBMA certificate refineries

DigixGlobal (DGX)

Website: https://digix.global.com

DigixGlobal is a Singapore-based business that offers gold-pegged DGX tokens. Its DGX token is backed by a 1:1 ratio, and it has a market value of $1183,867 dollars. Each token is equivalent to 1 ounce worth of gold. The gold is stored in Singapore and Canada and Canada, which provides a unique benefit when compared to other tokens that are gold-backed on this list. By having storage facilities in two regions of the globe and the dangers of having a single storage location are minimized.

DigixGlobal is a great option for those who would like to buy physical gold, but don’t have the funds to store it and possibly the cash required to purchase a full-sized bar. DigixGlobal offers the possibility to purchase fractional tokens and invest them, then transfer and then redeem them at any time.

DigixGlobal lets anyone accumulate gold in tiny amounts and effectively manage it around all hours of the day with no restrictions. With this token, it is possible for users to participate in the gold ETF as well. Tokens can be traded through cryptocurrency exchanges too.

The company holds physical gold to back its cryptocurrency within Singapore as well as Canada. Additionally, the custodians that they work with are covered by the Bullion Association.

Features:

  • Users sign up, select the wallet they want to use, and then purchase. You can purchase DGX by using crypto
  • One token also known as DGX is equivalent to one gram of gold. Gold is all backed in 100-gram Swiss gold bars from some of the top refineries in the country.
  • The token is built on the Ethereum blockchain and is stored on Metamask as well as other ETH wallets
  • Tokens do not have a storage cost. The ETF storage cost amounts to 0.4% per annum. For physical gold, the bar storage charge will be 0.6%, while the transaction fee to send tokens is 0.13% per transaction. For token conversion, the “recast” or token conversion fee to physical gold is one%

You must be aware that DigixGlobal is currently reviewing its position on the Singapore Payment Services Act, which could lead to DigixGlobal changing its jurisdiction.

Cash Telex (CTLX)

Website: https://cashtelex.com

One of the most intriguing coins available is Cash Telex. Cash Telex coins are linked to wealth that includes silver, gold diamonds, as well as real estate. The one Cash Telex gold coin equals one gram of pure gold which is secured in vaults. The gold is secured and audited as well as publicly verified.

Cash Telex gold coin represents 1 gram of pure gold which is safely bolded. All gold used is secured and audited and is publically verified.

Features:

  • Cash Telex offers a wide assortment of tokenized assets
  • Cash Telex gold coins, in 1-gram increments, make the process of accumulation easy
  • All gold is publicly verified

Meld Gold By Algorand (MCAU)

Website: https://meld.gold

A gold-backed Cryptocurrency (Meld GOLD): 100% gold-backed (1 token = 1 gram of gold bullion) and completely transparent which allows holders to keep their gold in physical form should they want to.

MELD is the world’s first decentralized and non-custodial DeFi banking protocol for the lending and borrowing of fiat as well as cryptocurrency. Its MELD token is an oversight token that allows users to participate in the development of the protocols.

As with other gold-backed coins, Meld Gold is able to make gold available to investors in small amounts. They allow for the exchange of gold at a real-time rate and could also reduce some of the uncertainty that is associated when purchasing physical gold.

The token is, at the very most, in theory, protecting investors from the soaring inflation that it occurs in traditional crypto markets. Additionally, it can reduce the delays in transactions, one of the major issues that plague the physical metal market.

Each token is a digital copy of each of the Meld digital Gold Certificates supported by gold in physical form. The tokens can be stored by an Algorand Wallet, which users can check and monitor their token value. It permits decentralized storage and holding in any place and at any time.

Features:

  • You can purchase it through markets over-the-counter or through Meld partners.
  • Algorand The Algorand tokens are listed, support the atomic swap and the standard features of asset tokenization
  • The token is able to be converted into any fee or crypto through an exchange or returned to physical gold.

CACHE Gold (CGT)

Website: https://cache.gold

Cache Gold Token transparently combines the unique characteristics of gold and the blockchain. The tokens are sealed, redeemable, and controlled by worldwide liquidity. Each token is equivalent to 1 Gram of pure gold.

CGT provides instant settlement of transactions within an extensive network infrastructure. CGT offers GramChain, an asset-tracking system that provides live bar locations, images as well as gold-serial numbers.

Features:

  • Each token is a physical gold coin in increments of 1 gram.
  • The company offers an all-time monitoring system, with photographic evidence of gold holdings

Kinesis Gold (KAU)

Website: https://www.kinesis.money

Kinesis Gold is another cryptocurrency that is backed using physical gold. Every KAU is secured by 1 kilogram of physical gold that is stored in fully audited and insured vaults as well as under your own name. It lets you spend and trade, as well as send or earn gold anyplace in the world.

There aren’t any storage charges and transactions are quick, with confirmation within three seconds. It is easy to redeem, however it requires at least 100 grams.

Features:

  • Kinesis Gold offers extreme divisibility
  • Kinesis Gold coins are denominated in increments of 1gram
  • Redeemable up to 100 grams

Meta Gold

Website:// https://metagoldrewards.com/

An Australian technology start-up called Meta Gold has partnered with Algorand, a blockchain protocol company, to develop a decentralized gold token.

Meta Gold can be bought on the platform of the company for a gold price. It is integrated into the existing gold supply chain that permits the seller to provide immediate gold trade and settlement using tokenization.

Another benefit of the system is the fact it allows users the ability to trade virtual gold tokens as well as physical gold.

Features:

  • MetaGold is among the top-earning rewards coins.
  • It was created by a highly experienced and international team comprised of 28 people.
  • Six or more full-time employees are needed to help grow MetaGold.
  • The marketing professionals are responsible for the initiative.
  • Constantly powerful marketing intelligence.
  • 10% of the supply is earmarked for charitable causes.

AABB Gold Token (AABBG)

Website: https://aabbgoldtoken.com/

AABBG is among the most recent offerings into the gold-pegged cryptocurrency market. Luckily, the virtual token has a number of innovative and future-oriented advantages.

It is based on a mine-to-token gold-backed format to ensure that tokens are present on the digital web. It validates physical gold assets backing it. AABBDD token is 100% by the business’s mining production unit.

Features:

  • The AABB Gold token (AABBG) is secured 100% through physical gold owned by Asia Broadband, Inc.
  • At the time of the token release, 5.4 million tokens were sold for sale at 1/10th (0.1) grams of gold’s price.
  • It is a hybrid cryptocurrency backed by the fundamental price of gold.
  • AABBG operates similarly to it is stablecoin and the token price is based on the minimum which is 0.1 grams of gold’s spot price.
  • AABBG’s unique feature AABBG lies in its vertical integration with gold mining with backing.
  • AABBG enjoys the upsides that gold offers as well as cryptocurrency providing an amount in price security.

Anthem Gold

Website: https://anthemgold.com/

Anthem Gold was created through Anthem Vault Inc., which has tokens that are secured by one gram of physical gold. The gold is insured completely and stored securely with the non-bank operator. The coin was launched in April 2019 and is now available through Anthem’s Anthem Gold Edge Wallet.

Features:

  • Physical Gold That’s Tracked and Tradable On Blockchain.
  • This Gold can be shipped to the residence. You may also trade your gold bars back to us at a cost of 0% costs at the current price at the time of sale.
  • Fully-backed custody
  • Instant Tradable
  • Securely Vaulted
  • Insured
  • Transparent

FAQs

What Crypto is Backed by Precious Metals?

Gold-backed cryptocurrencies such as PAX Gold and Tether Gold are digital tokens, whose ownership is registered on the blockchain which is similar to the famous crypto tokens such as Ether or Bitcoin. Every PAX or Tether token is equivalent to the equivalent of one troy ounce of pure gold.

Which Cryptocurrency is Backed by Elon Musk?

SpaceX and Tesla CEOs said that Bitcoin could be used to empower people. SpaceX as well as Tesla CEOs have said that Bitcoin might be used to aid in economic development. According to his tweets, and confirmed in the forum, Elon Musk revealed he has three cryptocurrencies: Bitcoin, Ethereum, and Dogecoin.

Which Crypto has the Highest ROI in Mining?

The best includes Ethereum, Monaco, Monero, Vertcoin, Grin, Monero, ZCash, Bitcoin Gold, Haven, Ravencoin, Litecoin, and Aeternity.

Is Bitcoin Backed by Gold?

It’s not true. Bitcoin is not secured by precious metals, gold, or fiat. Bitcoin cryptocurrency gets its worth from a number of variables. They include decentralized acceptability, usability technology, and demand. The price of it fluctuates with the level of demand and its usability.

Is Bitcoin Backed by Assets?

It’s not true, Bitcoin is not backed by any source. The value is derived from the demand for it, its acceptance, usability, and technological value. Bitcoin, which is backed with gold assets, and other items are judged or determined by the value or price of the assets that support them.

Who Owns Most Bitcoins?

The majority of Bitcoins are owned by corporations.
As of August 20, 2021, Microstrategy is on the top of the list of companies who hold the largest amount of Bitcoins which include 108,992 Bitcoins, followed by Tesla with 42,902, Galaxy Digital Holdings with 16,400, Voyager Digital with 12,260 as well as Square which has 8,027 Bitcoins. The majority of the 69,369 Bitcoins owned by Silk Road operatives were confiscated by Silk Road’s US IRS or investigators of Silk Road.

Conclusion

To conclude, this best gold-backed cryptocurrency list is suggested for those who are interested in holding gold.

However, they are keen on the benefits of digitally liberating physical gold to protect against volatility, yet they think digital currencies aren’t stable enough.

The fact that they are backed by proven physical gold reserves, they are as stable as stablecoins that are backed by fiat.

We’ll recommend that you choose the best gold-backed tokens that allow you to convert into gold at any point. It is advised to verify the validity of the project, verify the evidence of the physical gold reserves and be sure that the project is safe and not a fraud.

Based on the blockchain means that supply can be publicly confirmed to be valid for Tether Gold, DigixGlobal, Paxos Gold, Gold Coin, Perth Mint Gold Token along with Meld Gold.

Tether Gold, DigixGlobal, and Paxos are transparent as to which of them is the custody of their physical gold in addition to being established projects. If you’re seeking a low-cost alternative, consider Gold Coin’s pricing at $0.1150 per token.

Even though DigixGlobal is extremely competitive in terms of charges, however, they are not the best. Perth Mint Gold token is one of the tops in the fee category, having no storage, transaction, or management charges.

Disclaimer: The information presented in this article represents the writer’s personal opinion and is not investment advice. It is intended for educational reasons only.

By using this information, you acknowledge that this information provided is not an instruction for financial or investment decisions. Make sure to conduct the necessary research yourself and talk to financial advisors prior to making any investment decision.

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Dibyajyoti Bordoloi is the founder of VanceStaffing.Com. Being a stock trader and investor, he has over 15 years of experience not only trading and investing in various Stocks, Crypto, Commodities, and Real Estate but teaching non-technical traders and investors like you how to do it the right way. He is a B.Com graduate (honours in Accounting and Finance) from Guwahati University. He is also a Practicing Company Secretary, passed out from The Institute of Company Secretaries of India; Guwahati Chapter.