DigixGlobal, an Ethereum-backed gold asset tokenization company, has collaborated with software provider Monolith Studio to create the first ever gold-backed debit card using a blockchain. The card will be available to DigixGlobal users worldwide. However, Kai Cheng Chng, CEO of Digix, stated:
“The partnership will focus on some specific markets namely countries with weak national currencies and large remittance flows. The partnership will also work to make it easy for the general public to acquire DGX tokens for use on their card."
The DigixGlobal debit card is based off of TokenCard, an Ethereum-backed debit card that can hold ERC20 tokens. The TokenCard platform is a venture of Monolith Studio, a developer of Ethereum powered products and platforms for Web3. TokenCard combines Ethereum and the Visa payment network for a distributed banking solution that seeks to innovate banking services like asset management and international remittance. Each debit card is backed by a personal smart contract that ensures users remain in control of deposits, without hindering use. Mel Gelderman, co-founder of Monolith Studio, told ETHNews:
“TokenCard is a banking card system that will be backed not just in volatile assets like the Bitcoin debit cards. We have something that is backed on something tangible like gold. Something that has stable value. We know that normal people aren’t going to use Bitcoin for their daily transactions because it’s too volatile. They don’t understand it.”
In addition, TokenCard’s asset retention feature allows for the avoidance of needless holding of a fiat balance. Gelderman stated:
“The debit card we’ll issue to users technically has no balance at all. However, the moment that you use a card in the shop, it’s loaded with exactly the amount you’re paying with. We authorize the transaction and Visa deducts it.”
He went on to say:
“Your actual accounts or actual balance is an ERC20 compliant token wallet, your funds really are held completely in Ether or other tokens. So there is no fiat for the user.”
When users initially apply to TokenCard, they will go through a set-up wizard that will prompt them to choose the standard currency from a curated list of stable coins. According to Gelderman, Monolith won’t recommend any “incredibly volatile” assets.
DigixGlobal and Monolith are pushing toward the future of fintech with practical solutions that can assist with mainstream adoption of virtual currencies, offering a product that has intrinsic value, flexibility, and persistent demand.