Malaysia-based FinTech firm HelloGold has received a sharia-compliant certification for its gold-backed cryptocurrency from Amanie Advisors of Malaysia, a sharia advisory company specializing in Islamic financial institutions.
HelloGold’s cryptocurrecy, GOLDX, which was introduced late last year, is an ethereum ERC20 token backed by physical, investment-grade gold, with each token equal to one gram. The gold is stored in a vault in Singapore. The company said that it never issues a GOLDX token unless it holds its equivalent amount of gold, and to guarantee transparency its records are publicly accessible and verified independently by its vaulting partner.
Last year, the company launched a blockchain mobile application in Malaysia. The app, which provides users with an opportunity to buy and sell GOLDX, was also certified by Amanie Advisors. HelloGold is now planning to extend its online gold platform in Thailand later this year, with the third market expected to emerge by the end of the year.
The company said GOLDX can currently be purchased from its mobile app or directly from its website with bitcoin and ethereum. It will be available for purchase on exchanges in the coming months. GOLDX will provide investors with exposure on gold through a digital token, as well as a liquid investment vehicle as the token itself is transferable between ethereum wallets.
“Having earned the world’s first Shariah-compliance certification for our GOLDX token, HelloGold has opened the door to over a billion Muslims to access a new financial product,” said Robin Lee, CEO and Co-founder of HelloGold. “As the international Islamic financial market continues to grow and draw interest from non-Muslim countries, the Islamic financial services industry’s total worth has reached USD1.9 trillion in 2016.”
In addition, HelloGold is also exploring other unspecified assets for its blockchain technology, which involves a shared electronic ledger that allows parties to track transaction information through a secure network.
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