MKS PAMP has announced the relaunch of its DGLD token, initially deploying $20 million in digitized gold. This reintroduction comes as gold prices have surpassed $3,600 per ounce and amid increasing demand for tokenized assets. DGLD now positions itself as one of the largest gold tokens available in the market.
DGLD functions as a Real-World Asset (RWA) token representing digital ownership of allocated physical gold. Each token is reportedly 100% backed by LBMA-accredited gold bars produced by PAMP, which are insured and stored in Swiss vaults. The system includes a bar-mapping tool enabling ownership verification through wallet addresses or bar identification numbers, while supporting physical redemption of gold in amounts as small as 1 gram.
Gold Token SA (GTSA), a subsidiary of MKS PAMP, manages the issuance and operations of the token. The company described its first attempt as entering an “immature market,” explaining the timing of this relaunch now that both demand and infrastructure have matured.
On the compliance front, GTSA is registered with a self-regulatory organization (VQF) supervised by the Swiss financial authority FINMA, implementing institutional-level KYC/AML procedures. The token operates on the Ethereum blockchain, designed for interoperability within DeFi ecosystems, though complete smart contract details aren’t always fully disclosed. The combination of physical custody in Switzerland and the regulatory framework aims to minimize counterparty risk and build institutional trust.
Benefits and considerations for users
The relaunch capitalizes on the dual advantages of digital liquidity and physical backing. For traders, DGLD provides exposure to gold with 24/7 trading capabilities and potential integration into derivatives and DeFi strategies. Corporate treasuries can benefit from a fractional and insured alternative to traditional gold bar logistics.
However, tokenization introduces specific risks, including technological dependence on smart contracts, potential secondary market liquidity constraints, and KYC/AML compliance requirements that might affect entry and exit speeds. Managers will need to evaluate the balance between improved traceability and operational costs.
This relaunch represents MKS PAMP’s complete acquisition of Gold Token SA and is positioned as a strategic response to demographic shifts in investor demand and the continued strength in gold prices. The Swiss company presents the project as merging its legacy in precious metals with the efficiencies of blockchain tokenization.
The DGLD token combines physical gold backing, Swiss regulatory oversight, and digital functionality appealing to both traders and treasury departments.
