Bitcoin, often referred to as “digital gold,” is expanding its functionality by allowing users to mint and trade physical gold on its blockchain. This new feature is made possible through the Ordinals protocol, which transforms ownership of real gold into a Non-Fungible Token (NFT) format.
Swarm Markets and OrdinalsBot Partner for Gold on Bitcoin
Swarm Markets, a platform that focuses on tokenizing real-world assets and is regulated by BaFin in Germany, has partnered with OrdinalsBot to make it possible for investors to buy gold bars using Bitcoin. This collaboration introduces gold as the first real-world asset (RWA) available on Trio, a new marketplace from OrdinalsBot that will launch later this year.
The Ordinals protocol operates by assigning unique data, like images or text, to individual satoshis, the smallest units of Bitcoin. This adds unique value to each satoshi, making them similar to Bitcoin’s version of NFTs. Swarm and OrdinalsBot have taken this further by attaching specific gold kilobar serial numbers to satoshis, which can then be traded through Bitcoin’s Ordinals protocol.
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Bridging the Gap Between Physical and Digital Gold
While both Bitcoin and gold are known for their value as limited-supply assets, they respond differently during economic downturns. For example, gold surged by 10% to reach record highs during the third quarter of this year due to U.S. recession fears, whereas Bitcoin saw a modest 0.8% increase.
Swarm’s Ordinals platform now gives investors the ability to hold both physical and digital gold on a single blockchain, which could put an end to the long-standing debate over which form of gold to invest in. As Timo Lehes, co-founder of Swarm, explained in a statement to CoinDesk, “Investors no longer need to choose between real or digital gold, when Swarm’s Ordinals allow them to hold both using one blockchain as a unified infrastructure.”
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
