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Best Cryptocurrencies Backed by Precious Metals

|Author: Viacheslav Vasipenok|3 min read| 2372
Best Cryptocurrencies Backed by Precious Metals

Hello!

Best Cryptocurrencies Backed by Precious MetalsThe crypto industry continues to offer remarkable growth potential, yet its inherent volatility raises legitimate concerns about long-term stability. Backed cryptocurrencies, often referred to as stablecoins, provide a practical solution by tying digital assets to tangible reserves such as precious metals.

With rising interest in this segment, a variety of gold- and silver-backed tokens are now available. This overview examines some of the most established options, ranging from gold-backed projects like DigixGlobal to silver-backed assets such as Silver Coin.

Perth Mint Gold Token (PMGT)

The Perth Mint Gold Token (PMGT) is fully backed by physical gold sourced from the Western Australian government’s Perth Mint. The government guarantees both the weight and purity of the metal, while digital certificates are distributed through the GoldPass app.

Best Cryptocurrencies Backed by Precious MetalsInfiniGold oversees the project, allowing real-time verification of gold reserves against publicly available GoldPass account balances. This transparency eliminates the need to wait for periodic audits. Token holders may redeem PMGT for physical gold, although liquidity remains limited.

DigixGlobal (DGX)

Each DGX token issued by Singapore-based DigixGlobal represents one gram of gold stored in insured and accredited vaults in Singapore and Canada. The Bullion Association handles insurance and accreditation for these facilities.

Best Cryptocurrencies Backed by Precious MetalsDGX tokens enable fractional ownership, easy transfer, and redemption of gold through a digital format. A 1 % trading fee applies when exchanging tokens for physical metal, and DigixGlobal covers storage (demurrage) costs. The token maintains modest trading volume and a market capitalisation of just over $4 million.

Silver Coin

Silver Coin was the first fractionalised silver-backed asset that can be acquired with both cryptocurrencies and fiat currencies. No identity verification is required—only an Ethereum wallet address is needed to receive the token. Investors may redeem holdings for 99.9 % pure physical silver at any time.

Best Cryptocurrencies Backed by Precious MetalsA live stream of the physical silver bullion is provided, alongside published audit reports available on the project website. Security features include two-factor authentication to mitigate unauthorised access risks.

Gold Coin (GLC)

Gold Coin is a fractional gold-backed cryptocurrency: each token represents a fraction of one gram of gold, significantly lowering the entry barrier compared with purchasing physical metal or larger-denomination tokens. Built on the Ethereum blockchain, the project has operated reliably for several years, offering users the ability to accumulate holdings gradually.

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PAX Coin (PAXG)

Best Cryptocurrencies Backed by Precious MetalsPAX Gold (PAXG), launched by PAXOS, addresses practical challenges of gold storage and usability as a medium of exchange. Each PAXG token is backed by one troy ounce of LBMA good-delivery gold stored in a London vault and audited monthly. As an ERC-20 token, PAXG can be held in any Ethereum-compatible wallet. The gold reserves are segregated from PAXOS corporate assets, protecting them from creditors in the event of company insolvency.

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