Bahrain is set to have its first tokenized gold, as ATME, a crypto exchange in the country fully ventured into the tokenization of real-world assets. According to a revelation by TokenFi on Thursday, the innovation will permit investors to invest in gold easily, reducing the rigorous process of accumulating the traditional asset.
The report explains how ATME, a digital assets exchange based in Bahrain is set to issue its first tokenized real-world assets; gold-supported tokens. In the statement, TokenFi reported that the cryptocurrency exchange is exploring more real-world assets to bring to the crypto and blockchain space.
ATME is following in the footsteps of other renowned crypto establishments to launch tokenized gold. In recent times popular companies like HSBC, Paxos, and Tether have all launched tokenized gold.
So far, the tokenized gold market has matured into a $1.2 billion sector, underlining how the industry is enjoying exponential growth. To an extent, tokenized gold is already proving to be a phenomenon as investors are embracing the concept as it helps them save the stress of transporting and securing the asset.
What ATME is offering Bahrain investors through the project
Thanks to tokenization, degens no longer have to go through rigorous paperwork, middlemen, and setbacks that come with buying traditional gold. According to the statement, transactions relating to the tokenized gold will be accesible on a transparent public ledger to build trust.
Furthermore, the project comes with a token that has an underneath connection to gold. By that, each token represents one kilogram of gold stored in a safe vault. Investors in Bahrain can easily liquidate the tokens for cash on renowned cryptocurrency exchanges, streamlining the process of trading the assets.
More so, the company stated that investors are struggling to exchange traditional gold due to regulation and geography restrictions. In response, ATME permits investors to trade and exchange the tokenized gold on international cryptocurrency exchanges.
ATME established that holders of the assets in Bahrain don’t have to worry about theft, insurance, and custody fees. Instead, investors can store their holdings in a regular cryptocurrency wallet as they maintain their digital proof of ownership.
Additionally, the company swiftly established that the tokenized asset isn’t an attempt to undermine the popularity and adoption of gold. Conversely, the statement established how ATME intends to enhance the widespread adoption of gold.
The firm added that day-to-day investors may struggle to invest in gold due to its scarcity and value. Further, the announcement narrated how the tokenized asset will create a pathway for investors to accumulate gold cheaply. This move according to TokenFi will make the traditional asset to become more accessible.