Cardano, one of the leading blockchain platforms, has announced the launch of its first gold-backed token, Kinka Gold ($XNK), with strategic support from EMURGO, a founding entity of the Cardano ecosystem. This collaboration marks a significant milestone, integrating real-world assets into the Cardano blockchain.
Kinka Gold, a subsidiary of the publicly-listed Japanese neofinance services company UNBANKED, INC., is issuing the $XNK token, which is fully backed by premium Japanese gold that meets the London Bullion Market Association (LBMA) standards. Each token represents one ounce of gold, securely stored in global, bankruptcy-remote vaults and intended for use on the Osaka Exchange.
The gold-backed token is expected to act as a catalyst for the further tokenization of real-world assets (RWA) on blockchain platforms. It offers a stable, gold-pegged alternative to fiat-backed stablecoins, particularly in jurisdictions where regulatory frameworks around fiat-backed digital assets are unclear or restrictive. Additionally, the integration of gold into Cardano’s broader decentralized finance (DeFi) ecosystem opens new possibilities for using gold as collateral in lending, payments, and other DeFi applications.
Strategic and Technological Support from EMURGO
EMURGO, a key driver behind Cardano’s Web3 technologies, is providing critical support for the launch of Kinka’s gold-backed token. EMURGO’s asset tokenization platform will enable Kinka to transform real-world gold into digital tokens seamlessly, enhancing financial growth opportunities and operational efficiency. This partnership is expected to bridge the gap between traditional assets and blockchain technology, positioning Cardano as a key player in the tokenization of physical assets.
Ken Kodama, CEO and founder of EMURGO, commented: “Our collaboration with Kinka to support a gold-backed digital asset on Cardano strengthens the utility of Cardano and advances its real-world applications. This partnership unlocks new business use cases and brings the benefits of blockchain to traditional assets.”
New Opportunities for Gold and Blockchain Integration
Kinka Gold’s entry into Cardano’s ecosystem aims to expand the utility of gold beyond traditional storage or trading. By integrating $XNK into Cardano’s low-fee, high-speed blockchain, Kinka seeks to unlock new use cases for gold within the decentralized economy. Chris Lane, Director of UNBANKED, INC., emphasized the transformative potential of this project: “The $XNK token is not just about owning gold, but using it in new ways that power up the modern digital economy. Cardano’s low transaction fees and supportive community make it an ideal platform to further the on-chain movement.”
Looking Forward: A New Era of Tokenized Gold
As the first gold-backed token on the Cardano blockchain, $XNK is set to lead the way for other real-world assets to be tokenized and integrated into the decentralized economy. This move aligns with the growing global trend of using blockchain technology to disrupt traditional financial markets, offering investors secure and transparent ways to engage with tangible assets like gold.
The collaboration between Kinka, UNBANKED, and EMURGO represents a key development in the evolution of decentralized finance, as blockchain technology continues to open new avenues for tokenized assets in both retail and institutional markets.
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