Crypto wallet and blockchain security firm BitGo has partnered with Digix to bring its DGX gold backed stablecoin to the service.
The Palo Alto-based startup is adding compatibility with a gold-backed token whose value is not subject to the wild volatilities of the cryptocurrency world or foreign exchange fluctuations. The integration of Digix also helps deepen liquidity of its ecosystem that currently support 85 cryptocurrencies. This stable-price coin is particularly useful for payments, loans, and anything that requires a more stable store of value.
Digix digitizes physical gold in a secure and trustless manner by backing every DGX by one gram of gold from London Bullion Market Association-approved refiners. The token also offers full public auditability of the chain of custody using Ethereum blockchain technology. Users have real-time transparency, as well as having four third-party audits per annum to ensure authenticity. The physical gold is also redeemable at any time.
BitGo’s patent multi-signature wallet technology has attracted institutional players because it offers an enterprise-grade custody service for their assets as well as application programming interface access to its underlying security platform. BitGo’s multisig e-wallets require a transaction to have two or more signatures before it can be executed, a security layer that reduces the risk of fraud.
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For more security, a customer can also set spending limits and corporate treasury policies on the account, which also require multiple approvals from the customer to withdraw above-set limits.
Founded in 2013, the company had operated originally as a bitcoin wallet provider but then has branched out into other cryptocurrencies and now supports multiple altcoins including Ethereum, Ripple, Litecoin, Bitcoin Cash, Bitcoin Gold, and Royal Mint Gold. It plans to expand that offering to more cryptocurrencies in the future.
Earlier this month, BitGo has raised $15 million in new funding, led by Goldman Sachs and Galaxy Digital Ventures LLC, the venture capital firm founded by the billionaire Mike Novogratz.
Speaking on the integration, Kai C Chng, CEO of Digix, said, “We are proud to announce that DGX is integrated into BitGo’s Digital Currency Support with Enterprise Access. BitGo is the market leader in institutional-grade cryptocurrency security and custodial services, with integrations to some of the largest virtual currency players and exchanges.”