South Korean Tokenization Startup Chooses Klaytn Over Ethereum for Gold NFTs

The Klaytn Foundation, an organization devoted to expanding the Klaytn ecosystem, announced that Creder, one of its governance council members, will launch a tokenized gold offering called Gold Pegged Coin (GPC) in January. Creder will also launch Goldstation, a decentralized finance platform to convert physical gold into GPC tokens.

Creder Launches 1:1 Backed Gold Pegged Coin and Goldstation Tokenization Platform

Creder, a South Korean asset digitization startup, is taking its first steps into the gold tokenization business. The company will launch a 1:1 backed gold token called Gold Pegged Coin (GPC) later this month, being the first tokenized gold initiative launched outside Ethereum. Creder chose Klaytn, a blockchain that features low fees and scalability, as the base for this platform to democratize access to this tool. Other tokenized gold alternatives, like Tether Gold (XAUT), are only available on Ethereum.

In addition to the coin, Creder also announced the launch of Goldstation, a decentralized finance tool that will allow users to digitize their gold bullion using non-fungible tokens (NFTs). These gold NFTs are issued on another platform called The Mining Club, which will be used by Goldstation to mint GPC using the NFTs as collateral.

According to the Klytn Foundation, this opens new decentralized finance opportunities, allowing users to leverage this tokenized gold as collateral and generate revenue. Goldstation and GPC will initially be available only for South Korean users, given that the Korea Gold Exchange Digital Asset (KORDA) intermediates as the custody provider of the platform.

While initially, Goldstation will launch only allowing the tokenization of gold, Creder expects to expand to include other metals in its platform. The Klaytn Foundation stated they “plan to comprehensively expand precious metals real-world assets (RWA) tokenization beyond gold in the future.”

Gold tokenization has become a hot topic in financial markets, with several institutions launching initiatives in this field. In November, HSBC announced the launch of a gold tokenization platform focused on London markets, targeting a market of $525 billion.

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