In conversation with Ashraf Rizvi, Founder and CEO, Gilded

Unlike cryptocurrencies and other digital assets whose turbulent nature is tethered to considerable risk, gold is inherently less of a risk and more a safety net against inflation.

1. How does the Gilded App function?   

The Gilded solution is an easy-to-use platform that makes real physical gold digital, mobile and usable. Through secure and permissioned blockchain technology, users can safely acquire and own physical gold without the hassle of storing it in a private safe or financial institution vault. The title of ownership is provided immediately upon completion of the purchase, and the record of that transaction is accessible forever through Gilded's Linux Foundation Hyperledger Fabric blockchain. After a quick onboarding process and completing the KYC/AML verification process, customers can begin purchasing real Swiss gold with just a few clicks.

2. What is the difference between Sovereign Gold Bonds (SGBs) and gold purchased through Gilded?   

When someone purchases Sovereign Gold Bonds, that individual does not actually receive gold in its physical form. Instead, the individual receives a certificate of the corresponding quantity of gold that they bought. SGBs require a maturing period of eight years, with buyers offered an exit option after a minimum of five years. Unlike SGBs, digital gold via Gilded is yours to do as you please. When you purchase any amount of digital gold with Gilded, you own that gold. Full stop. Once you purchase gold through the Gilded solution, you are immediately granted the title of ownership for that bar(s). Your gold is also fully insured and stored securely in one of the several Brink's vaults located around the globe—Zurich, London, Dubai, Singapore, Sri City, or New York. You can even elect to hold the physical gold in your possession at your convenience.

3. Is it safe to buy digital Swiss gold? 

Yes, it is. Gilded takes safety very seriously, which is why they have implemented multiple cutting-edge security measures to ensure a safe and secure experience for all its customers. The physical Swiss gold that is available digitally to Gilded users is stored in one of several non-bank Brink's vaults around the globe and independently verified by Bureau Veritas, a global firm with a strong reputation as a leader in testing, inspection, and certification. In addition, all transactions conducted on Gilded's platform are permanently recorded on Gilded's Linux Foundation Hyperledger Fabric blockchain.

4. Who owns digital Swiss gold? 

Once digital gold is purchased through the Gilded app, the customer gets immutable ownership of it. All purchases are recorded on a private permissioned blockchain and a digital warehouse receipt with identifying information made easily available to the customers, providing clear documentation of the ownership of the purchased digital gold.

5. Gilded's approach seems to be millennial-centric. How is the company planning to focus on other generations for business expansion?   

It's no secret that digital capability is paramount for success regarding the future of financial investment vehicles. Gold is an integral part of Indian culture has been a store of value for thousands of years, so it is only logical to offer a digital platform for acquiring and storing the precious metal. Gilded might seem to have a millennial-centric approach due to the digital and technological aspects. Still, since we are making the ownership of a traditional asset like gold easier, it also appeals to the older generations. With the rising wave of wealth-tech, the older generations are also becoming accustomed to digital investments, and we believe this will continue to support our business expansion. 

6. In the next ten years, the emerging economies are most likely to be driven by GenZ. What is your approach for the above-stated period?   

We are already seeing a significant shift towards digital in almost all aspects of life due to Gen Z being more comfortable with it as digital natives. In the coming years, we expect the wave of wealth–tech platforms to rise exponentially as the younger generations expect technological innovations to empower them with control and autonomy over their financial decisions. Hence, we intend to tap into this emerging trend by marrying new-age technology like blockchain with an asset as traditional as gold. The ease of a wealth-tech app, the possibility of fractional investments, and the availability of information such as live gold prices will provide an experience to Gen Z that they are usually drawn to.         

7. Against new-age asset classes, how do you think digital gold would perform in the coming years?  

We know that India, in particular, has taken quickly to digital tech adoption. In a survey of the Indian population conducted by EY and Imperial London's Institute for Global Health Innovation, 51 percent of the respondents have increased their use of digital technologies and data solutions since the outbreak of the COVID-19 pandemic. Based on that enthusiasm for digitalization, we hope that new-age investors will recognize the immediate benefits of purchasing and holding digital gold as a means of wealth preservation. Historically, gold has been a strong hedge against the seemingly inevitable effects of inflation. Unlike cryptocurrencies and other digital assets whose turbulent nature is tethered to considerable risk, gold is inherently less of a risk and more a safety net against inflation. We think investors will recognize the importance of protecting themselves against inflation with a timeless asset like gold with the added benefit of a fully digital platform where their gold is not only accessible but usable—24/7.

8. How well is the company prepared against hacking and cyber security?   

Cyber security is taken very seriously at Gilded, with several measures to prevent potential hackers from accessing individuals' information. All users looking to leverage the Gilded solution to make any digital transaction must first be certified through an AML/KYC personal identity verification process. Once approved, all transactions made via the Gilded solution are recorded on Gilded's immutable and permissioned Linux Foundation Hyperledger Fabric blockchain. The record of every transaction made is permanent and cannot be accessed from any party outside of Gilded's server.

9. In a country like India, where there is a huge demand for physical gold, how well do you think that people would be able to adapt to the concept of digital gold?   

The affinity of Indians towards gold is one of the major reasons behind the launch of Gilded. We are aware of the importance and traditions attached to the yellow metal in India. However, we also recognised that buying and selling physical gold is cumbersome. Digital gold eliminates the issues related to buying physical gold, such as finding secure storage, transportation, insurance, and verification of purity. Additionally, digital gold is more affordable due to the option of buying it in fractions and easier to liquidate due to the 24/7 accessibility. We believe these benefits, in addition to the popularity and status of a safe haven that gold enjoys, make digital gold an easy investment asset for Indians to adapt to.        

10. What do you think are the major challenges for the business in the coming years? Discuss your approach for the same.

The biggest challenges for the business in the coming years deal largely with educating our audience about the value proposition of digital gold as a concept. However, we see it as an opportunity rather than a challenge. Currently, there appears to be a general lack of awareness about what exactly digital gold is. Some people are unaware that when they buy digital gold, they get the ownership of actual physical gold and not a representation of it. As digital gold becomes more commonplace in portfolios, this misunderstanding will also be cleared. In the meantime, we also intend to continue spreading awareness about the many benefits of digital gold over physical gold.