Swarm Markets, a platform that deals with real-world assets and is licensed by the German regulator BaFin, has partnered with OrdinalsBot to offer a new investment opportunity in the digital gold market. This collaboration will allow investors to mint and trade physical gold on the Bitcoin blockchain through the Ordinals protocol.
The unique aspect of this service is that individual satoshis, which are the smallest unit of Bitcoin, will be inscribed with specific data such as gold kilobar serial numbers. This process will give these satoshis individual value and make them tradable on the Bitcoin network via the Ordinals protocol. Essentially, this will bring the concept of tokenized gold to the digital market for the first time.
While Bitcoin is often compared to gold as a store of value due to their limited supply, it is important to note that Bitcoin does not always outperform gold in times of market uncertainty. For example, during the third quarter of this year, when concerns about a U.S. recession were prevalent, gold prices surged by 10% while Bitcoin only saw a modest 0.8% increase.
Swarm co-founder Timo Lehes emphasized the significance of this new offering by stating that investors no longer have to choose between holding real gold or digital gold. With Swarm’s Ordinals, they now have the opportunity to hold both simultaneously on a single blockchain infrastructure.
This development is part of Trio, a marketplace developed by OrdinalsBot that is expected to launch by the end of the year. Trio aims to provide a platform for various real-world assets to be tokenized and traded using the Ordinals protocol. This expansion into the digital gold market marks a significant milestone for the cryptocurrency industry and opens up new possibilities for investors looking to diversify their portfolios.
It is important to mention that CoinDesk, the source of this information, is a reputable media outlet that covers the cryptocurrency industry. Their journalists adhere to strict editorial policies to ensure integrity, independence, and freedom from bias in their publications. CoinDesk is part of the Bullish group, which supports and invests in digital asset businesses. Additionally, CoinDesk employees, including journalists, may receive equity-based compensation from the Bullish group.
In conclusion, the introduction of tokenized gold on the Bitcoin blockchain through the Ordinals protocol represents a significant advancement in the digital gold market. This innovation provides investors with a new way to access and trade physical gold in the digital space, offering a unique opportunity to diversify their investment portfolios. As the cryptocurrency industry continues to evolve, developments like these pave the way for greater integration between traditional assets and blockchain technology.
