BitGold Enables Gold Buying for US Residents, Shares Rise 16%
BitGold has made its gold brokerage service available to US residents, allowing them to buy, sell or redeem it on
BitGold has made its gold brokerage service available to US residents, allowing them to buy, sell or redeem it on its online platform.
The Canada-based startup is looking to make gold a ubiquitous medium for savings and trade, touting its rare properties and potential as a store of value. Its online brokerage service allows users to buy and store physical gold for a 1% fee. It also supports making and accepting payments with gold, a feature not yet supported for US users.
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Bitcoin’s blockchain is leveraged to make gold transactable.
US residents will also gain access to the mobile app and prepaid cards, which are scheduled for launch over the coming weeks.
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The tapping of the US market is key as BitGold looks to solidify its global presence and make inroads into strategic markets. One month ago, it acquired UK-based GoldMoney for C$51.9 million ($42 million). GoldMoney is one of the largest precious metals storage firms in the world, stating to hold $1.2 billion worth of client assets.
The acquisition came shortly after its public launch on the TSX Venture Exchange, which in turn came only weeks after launching its full service.
Shares in BitGold soared by 16% to $5.00, a one-month high.
There are 36,619,885 common shares outstanding, according to a regulatory filing, implying a total valuation of $183 million.
didn’t E-Gold attempt to do this years ago? and eventually they changed their hat that they were in fact a money transmitter service?
I like the idea, but the weakest link is where is the gold stored? How can users be assured that the gold will be made available for physical delivery if needed?
The gold is physically stored in any of several market vaults, depending on your location.
didn’t E-Gold attempt to do this years ago? and eventually they changed their hat that they were in fact a money transmitter service?
I like the idea, but the weakest link is where is the gold stored? How can users be assured that the gold will be made available for physical delivery if needed?
The gold is physically stored in any of several market vaults, depending on your location.
@Jon – based on a rough report I viewed of the preparations a broker was doing to file this report, I am fairly certain they include floating P&L
@Jon – based on a rough report I viewed of the preparations a broker was doing to file this report, I am fairly certain they include floating P&L