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Turkish Market To Introduce Gold-Backed Digital Tokens After New Partnership – Cryptovibes.com – Daily Cryptocurrency and FX News

Turkish Market To Introduce Gold-Backed Digital Tokens After New Partnership – Cryptovibes.com – Daily Cryptocurrency and FX News


Gold wholesalers are now beginning to find new methods of expanding their businesses to retail investors using blockchain-based tokenization. AgaBullion, an international bullion trading company has signed a partnership with United Kingdom-based fintech Aurus Technologies to provide gold-backed tokens for trading in the Turkish market.

This partnership will let investors buy grams of LBMA-accredited gold as ERC-20 tokens through AurusGOLD. Being a gold-backed ERC-20 token powered by the Ethereum blockchain, AurusGOLD (AWG) will be minted and distributed by the gold dealers using the Aurus’ blockchain-based solution. AgaBullion chairman Gökhan Yılmaz mentioned:

“Gold is the oldest decentralized finance system in the world. It has become a globally recognized and established ecosystem.”

He also said that since the lack of any underlying assets coupled with high volatility makes other cryptos unreliable, a physically backed token makes a lot of sense. AgaBulllion CEO Sarp Tarhanaci commented:

“We see a huge potential for digital precious metals. By partnering with Aurus, we can now use their blockchain platform to facilitate fractional gold ownership in Turkey.”

Turkey has a long history of investing in physical gold and it has a high adoption rate of crypto as an alternative method of protecting wealth. These factors make it a viable and attractive market for digital gold, according to AgaBullion. The firm also explained that the pandemic-related lockdown in the country made it impossible for traders to access physical gold:

“People in Turkey are looking for something reliable and sustainable. Due to its centralized structure, it’s not efficient for consumers to buy gold from online platforms provided by banks. For AgaBullion, the most logical next step is a digital product.”

Turkey ranks among the biggest gold markets in the world, where the precious yellow metal is majorly recognized as a form of wealth.  Mark Gesterkamp, the Aurus business development manager, said:

“AgaBullion is an approved member of Borsa İstanbul, offering the infrastructure, market knowledge, and network of clients for us to expand further the usability of digital gold and other precious metals in Turkey.”

Aurus told reporters that the eventual goal for AWG is to establish it as a means of payment. The team behind this project does not want to compete with fiat but they want to offer a reliable and stable alternative.

Blockchain technology supports an inclusive and efficient system, according to the firm:

“It makes precious metals accessible to ordinary people and not just the privileged sophisticated investors that largely dominate the market currently.”



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