Gold Arrives on ‘Digital Gold’ as Bitcoin Gets Tokenized Version of the Metal

As a seasoned crypto investor with a penchant for both gold and Bitcoin, I find the partnership between Swarm Markets and OrdinalsBot truly groundbreaking. For years, we’ve heard comparisons between Bitcoin as “digital gold” and traditional gold, but this collaboration takes that analogy to a whole new level.

For the first time, it’s now feasible to create and exchange actual gold in a physical form on the Bitcoin blockchain, which is often likened to digital gold, using the Ordinals protocol.

As a forward-thinking crypto investor, I’m excited to share that I’ve found an opportunity with Swarm Markets, a licensed RWA (Real-World Assets) platform regulated by BaFin (German Financial Supervisory Authority). They are collaborating with OrdinalsBot to offer investment in gold bars, all within the Bitcoin network. This unique partnership allows me to diversify my portfolio while tapping into the world of real assets on the blockchain.

Gold will be the inaugural Right-of-Warranty Asset (RWA) listed on Trio, a forthcoming marketplace designed by OrdinalsBot. The platform is slated for release by the end of this year.

In simpler terms, ordinals refer to the process of assigning unique information, like pictures or text, to individual satoshis (the smallest parts of a bitcoin). This makes each satoshi distinct and valuable on its own. Essentially, this is similar to non-fungible tokens (NFTs) in the world of Bitcoin.

As an analyst, I’m involved in a service provided by Swarm and OrdinalsBot that imprints unique gold kilobar serial numbers onto satoshis. This enables these units of Bitcoin to be exchanged via the Ordinals protocol, essentially making each one identifiable and traceable.

Bitcoin is frequently likened to gold due to their similar qualities as assets for long-term storage, stemming from their limited availability. Yet, it’s worth noting that Bitcoin doesn’t always behave like gold in times of economic uncertainty, such as during “risk-off” periods. This became evident during the third quarter of this year when worries about a U.S. recession surfaced; gold rose by 10% to new peak levels, whereas Bitcoin only saw a minimal increase of 0.8%.

According to Timo Lehes, Swarm’s Ordinals now allow investors to own both real and digital gold at once, without having to decide between the two, as they can utilize a single blockchain as their shared infrastructure. This information was revealed in an announcement he made to CoinDesk on Thursday.