Cardano Welcomes Gold Tokenization as EMURGO Partners with Kinka Gold to Launch XNK

Gold tokenization is set to launch on Cardano through a partnership between founding partner EMURGO and Kinka Gold (XNK), a subsidiary of a Japan-based neo-finance services firm.

EMURGO announced the latest collaboration in an official press release today. The report revealed that Cardano’s blockchain ecosystem will soon integrate its first major gold-backed token, XNK, with EMURGO serving as its technology partner.

Gold Tokenization Coming to Cardano

Notably, the rapid growth of blockchain adoption is transforming the financial landscape. As institutions worldwide increasingly recognize the potential of on-chain economies to disrupt traditional money markets, there is a growing focus on using reserve-backed and representative tokens.

Kinka’s XNK token is gold-backed, as every ounce represents premium Japanese gold that satisfies the highest LBMA standards. This gold is earmarked for use on the Osaka Exchange and stored globally in bankruptcy-remote vaults.

The launch of XNK on Cardano’s blockchain ecosystem has the potential to be a game-changer. It will enable the creation of other real-world asset (RWA) tokens and provide a stable, gold-pegged currency that can be used in jurisdictions that do not permit traditional fiat-backed stablecoins.

Moreover, the integration of gold into Cardano’s DeFi ecosystem could significantly increase its liquidity and use cases. This development could further accelerate the growth of on-chain economies and cement Cardano’s position as a leading blockchain platform.

EMURGO’s Back-to-Back Partnership for Cardano Adoption

EMURGO, a driving force behind the advancement of Cardano and Web3 technologies, has reaffirmed its commitment to bridging the gap between traditional assets and the network through its latest collaboration with Kinka.

EMURGO is unlocking new potential for real-world asset tokenization by supporting the technological foundation of a gold-backed digital asset on the Cardano blockchain.

“Through our partnership with EMURGO, we are poised to revolutionize the way people own and utilize gold,” said Chris Lane, Director of UNBANKED, the parent company of Kinka.

Moreover, Lane cited Cardano’s low transaction fees and vast community support as key factors in driving the growth of the on-chain movement.

To facilitate the issuance of its gold-backed tokens on the Cardano blockchain network, Kinka Gold will utilize EMURGO’s tokenization platform. This solution enables the transformation of real-world assets into digital tokens.

Notably, this partnership follows EMURGO’s recent collaboration with Zilliqa to enhance blockchain interoperability with Cardano’s technology. The aim is to improve security through liquidity channels across both ecosystems.

Additionally, Zilliqa will integrate EMURGO’s Web3 tools, including stablecoins, to facilitate asset tokenization on its platform. Before this, EMURGO had joined forces with Antler to draw global investors to Cardano’s ecosystem.

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