Cointree partnership lets gold rush into crypto wallets
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In a galactic first, Cointree is now letting investors hold gold as well as cryptocurrency in their digital wallets.
The Australian crypto exchange has struck a deal with Digital Gold Money Platform (DGMP), Rush Gold, implementing a world-first Gold-as-a-Service APIs to its platform which allow investors to own and hold gold in their crypto wallets.
The APIs enable apps and platforms to fully integrate real-time gold pricing, transactions, and reporting in a format that retail crypto investors are already accustomed to, simplifying diversification while providing downside protection.
Cointree COO Jess Renden told Stockhead the partnership is “a huge move” which furthers Cointree’s Holy Grail to up Australia’s financial literacy and knowledge of investment markets.
Renden says by offering a service to purchase gold directly through the platform, “we are able to assist our investor membership, who are primarily young retail investors, in better understanding how to diversify their investments and hedge against market risk.”
“With many cryptocurrencies seeing a correction over the last few months and some of the volatility in crypto markets smoothing, investors are now seeking ways to secure their gains for the long term and strengthen their portfolio to hedge against the potential of inflation.”
The decision to introduce gold into crypto wallets comes less than six months after JP Morgan stated that it was Bitcoin – not gold – which is the new inflation hedge.
This partnership could potentially be read as a hedge against that hedge.
How it works
Renden says purchasing gold bullion on the exchange is just as easy as investing in cryptocurrency.
“Cointree members simply need to sign in to the platform, visit the buy page, select gold and specify how much AUD they want to spend,” she says. “Then they process the order and it’s in their account. Access to real gold bullion straight away.”
While investors can use the exchange to buy and sell gold, pay bills with it, and set up recurring purchases, it is not currently exchangeable.
“Trading between gold and crypto is something we’re exploring but is not yet possible,” says Renden.
Who is Rush Gold?
Rush Gold is a FinTech platform that allows customers digital access to real gold which they can use just like cash, to buy, save, transfer, gift and spend via the Rush Mastercard and the world’s leading mobile wallets.
Founded in 2016, it was named 2021’s Digital Disrupter of the Year at the Finder Innovation Awards in August of last year and Finance Business of the Year at the MyBusiness Awards in 2020.