Gold has traditionally been purchased and stored in physical form, whether it is in the form of coins, bars, or jewelry. However, with the rise of blockchain technology, gold-backed digital assets have emerged as an alternative way to invest in and own gold. While both physical gold and gold-backed digital assets offer a way to own gold, there are significant differences between the two.

Physical gold is a tangible asset that can be held in one’s possession or stored in a secure location. Investors who purchase physical gold own the asset outright and have complete control over it. They can choose to store it in a safe or vault, or they can keep it with them. Physical gold can also be used for various purposes, such as making jewelry or industrial applications.

On the other hand, gold-backed digital assets are digital representations of physical gold that are backed by the actual metal. These assets are created through the process of tokenization, in which a physical asset is converted into a digital asset on a blockchain. This process allows for fractional ownership of gold, which can make it more accessible to a wider range of investors.

Orbiko, a fintech company that specializes in gold tokenization on the Stellar blockchain, offers investors the ability to invest in gold-backed digital assets. By using the Stellar blockchain, Orbiko is able to create gold-backed tokens that can be traded on cryptocurrency exchanges and used for a variety of purposes. The company also offers a gold tokenization platform that allows other businesses and organizations to create their own gold-backed digital assets.

One of the key advantages of gold-backed digital assets is their liquidity. Physical gold can be difficult to buy and sell quickly, and there can be high transaction costs associated with it. Gold-backed digital assets, on the other hand, can be traded instantly on cryptocurrency exchanges, making them a more flexible and accessible investment option.

Another advantage of gold-backed digital assets is their transparency. With physical gold, it can be difficult to verify the authenticity and purity of the metal. Gold-backed digital assets, however, are backed by actual physical gold, which is held in secure storage facilities and audited regularly. This provides investors with greater transparency and assurance that their investment is backed by actual physical gold.

In conclusion, while physical gold and gold-backed digital assets both offer a way to own gold, there are significant differences between the two. Physical gold is a tangible asset that can be held in one’s possession, while gold-backed digital assets are digital representations of physical gold. Gold-backed digital assets offer greater liquidity and transparency, making them an attractive investment option for many investors. With its gold tokenization platform on the Stellar blockchain, Orbiko is at the forefront of this emerging trend, offering investors a new way to invest in gold.