Cryptocurrencies have become increasingly popular in the past decade, and asset-backed crypto is no exception. As technology advances and blockchain networks evolve, digital asset-backed tokens quickly become the new way to store and transfer value. This investment guide will explore some of the top asset-backed cryptocurrencies available on Web3 today.
cTokens
cTokens are asset-backed erc-20 cryptocurrencies deposited in the Compound liquidity pool.
Here is an illustration with cUSDC:
cUSDC is an ERC-20 token that has recently gained traction due to its ability to generate interest. When a user deposits USDC into the Compound liquidity pool – one of the most popular DeFi protocols around – it gets converted into cUSDC tokens, allowing holders of the tokens to accrue interest on the loaned funds. Instead of making payments directly to users, it rewards them through an appreciation in the exchange rate of their cTokens.
cTokens are an excellent opportunity for traders looking to make a passive income without risking their funds.
Other popular cTokens include cDAI, cETH, and cUSDT.
PAX Gold (PAXG)
Pax Gold (PAXG) provides an innovative approach to investing in physical gold. The PAXG token represents a real-world asset, with each unit representing one fine troy ounce of gold stored in LBMA-approved vaults in London. Thanks to the blockchain, owners of PAXG tokens have secure access to their investment and can quickly transfer it at any time. Using PAXG, investors can exchange physical gold with all the benefits of a safe digital asset without high transaction costs or hefty storage fees. With PAXG, owning a safe and reliable form of precious metal is as easy.
Tether Gold (XAUt)
Tether Gold (XAUt) has revolutionized how physical gold can be invested in and accessed. With its launch in 2020, it provides a unique way for investors to incorporate gold into their portfolio in the form of a digital token.
Like other backed tokens, one fine troy ounce of Good Delivery standard gold from the London Bullion Market Association (LBMA) backs Tether Gold (XAUt) on a 1:1 basis. By owning digital tokens, investors receive the same benefits that come with direct ownership of physical gold but can avoid its drawbacks, such as high storage costs and limited accessibility.
Olympus (OHM)
Olympus (OHM) is an innovative DAO-governed reserve currency protocol based on the OHM token. OHM enables users to securely store and transfer value, with every OHM backed by a basket of assets held in the Olympus treasury at 1:1.
OHM cannot drop below $1 as the protocol guarantees to buy back any tokens trading for low amounts and burn them to push the price back up. However, due to the lack of an upper limit outlined by the protocol, OHM prices could trade higher than their original $1 value. This exciting new platform allows participants to use unparalleled security with persistent returns.
Snowbank (SB)
Snowbank DAO is an innovative decentralized reserve currency protocol that provides users on the Avalanche Network with a reliable source of stability. Its backbone, the SB token, is fully backed by a basket of assets in Snowbank’s treasury, including MIM and SB-AVAX LP Tokens. The backing means its price is stable, giving holders more protection from sharp drops. This versatility makes it an exciting proposition to users looking for a safe way to navigate volatile cryptocurrency markets.
Reserve (RSV)
An on-chain collateral basket in the Reserve Vault smart contract secures Reserve tokens. Currently, the basket is solely made up of USDC, meaning you can exchange each RSV token directly with the Reserve smart contracts for 1 USDC.
The smart contract provides an anchor for RSV, linked to its collateral assets and their potential to diversify in the future via decentralized rebalancing. Furthermore, this connection helps keep RSV tokens stable at $1.00 since all current collateral exchanges for USD at a rate of 1:1.
renBTC (rBTC)
renBTC is a decentralized cryptocurrency that provides users with an easy and secure way to own bitcoin. Each rBTC token is backed 1:1 with bitcoin, ensuring its value remains unchanged regardless of market conditions. As a result, users can take advantage of all the benefits of owning real BTC, such as trading, staking, and more. Using the Ethereum blockchain, renBTC offers users added functionality that traditional BTC does not, such as ERC20 interoperability and smart contract compatibility.
Rai Reflex Index (RAI)
RAI, an Ethereum-backed stablecoin, provides users with transferable digital assets that adhere to a managed floating rate. The RAIUSD exchange rate is calculated according to the principles of supply and demand, ensuring the best price for all participants. To ensure the currency’s stability, the protocol governing its issuance periodically devalues it depending on current market conditions. The system assures investors that funds are safe and secure while still having access to liquid assets. With RAI, users can use its versatility and minimize risk when trading digital tokens.
tGOLD (TXAU)
tGOLD (tXAU) offers traders and investors a dependable new option in the cryptocurrency realm. It is built on Ethereum’s blockchain and compliant with prevailing regulations, making it a reliable safeguard. The 1:1 value of tGOLD tokens for 1 gram of 99.99% LBMA-accredited gold assures users that their investment is secure, as the LBMA has fully audited and insured gold vaults. This factor can instill a sense of trust in traditional gold market traders looking to enter the digital currency space without sacrificing robustness and quality. With its remarkable value proposition, tGOLD (tXAU) sets a high benchmark for digital asset platforms.
Perth Mint Gold Token (PMGT)
The Perth Mint Gold Token (PMGT) is a revolutionary blockchain token developed by Trovio, providing users with an easy way to keep track of and transfer ownership of gold.
Each PMGT unit represents one fine troy ounce of physical gold stored in secure central bank-grade vaults from The Perth Mint. Each token is GoldPass based, an investment platform that provides digital certificates for physical gold.
As a tokenized version of GoldPass certificates, Trovio issues PMGT on the Ethereum blockchain as an ERC20 token. The certification ensures trust and simplicity through blockchain technology while enjoying the security and reliability of The Perth Mint’s precious metal resources. Perth Mint is the world’s largest refiner of newly mined gold, producing some of the highest-quality bullion available today.
tSILVER (TXAG)
Investors and institutions seek Silver as a hedge against inflation. Aurus offers the silver-backed token TXAG, uniquely allowing individual investors access to ownership of physical silver. A single TXAG is backed 1:1 with 1 gram of allocated silver. With TXAG, you can possess a tangible asset without buying or storing physical silver, making it an attractive option for those new to precious metal investments. In addition, tokens are redeemable anytime, meaning investors have complete control over their assets without third-party involvement.
Gyro (GYRO)
Multi-asset stablecoins and GYRO-USDT LP support GYRO’s treasury, so users can rest assured that the value of GYRO will not drop below the US dollar equivalent. As a result, GYRO is a secure and reliable investment, as its value remains backed by the US dollar. Furthermore, GYRO users can use the GDP DeFi lending platform, allowing for high returns and additional financial freedom with every transaction. Overall, GYRO’s security measures mean it is an excellent choice as an alternative currency.
zUSD
zUSD, a stablecoin developed and issued by GMO Trust, was designed to bridge the gap between traditional finance and the digital asset world. These fiat-backed coins allow users to utilize stabilized currency for crypto savings, lending, open finance, and decentralized finances (DeFi).
Every token is backed 1:1 with actual U.S. Dollar reserves held in FDIC-insured banking accounts for greater security. With zUSD, users can be confident that their assets are always redeemable for fiat in cases where conversion may be necessary. As more investors seek ways to access next-generation finance products, the advantages around the scarcity of innovative solutions such as those offered by zUSD become clear.
GYEN
GYEN is a cryptocurrency based on the Japanese Yen, developed and issued by GMO Trust. It is 100% backed by fiat currencies, so it can always be trusted to match the YEN value in circulation. In addition, bank accounts secured under FDIC insurance back all YEN reserves backing GYEN. GYEN has brought innovative ways to manage money, providing trust and security to those using it.
Conclusion
Precious metals, such as gold and silver, provide a great way to diversify your portfolio and protect against inflation. With the advent of tokenized asset issuance on the blockchain, it has become easier than ever to own physical gold and silver without buying or storing them.
Tokens such as PMGT, TXAG, GYRO, zUSD, and GYEN provide users with a secure and reliable form of investment that can be easily redeemable for fiat currencies. As a result, these tokens offer users an attractive alternative to traditional investments while still providing the same levels of security. Ultimately, they are a great way to diversify your portfolio and stay ahead of the curve regarding innovation and technology.
