Deenar, the First Gold-Backed Token on Cosmos, Goes Live on HAQQ Network

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As a seasoned crypto investor with a keen eye for potential and a deep respect for tradition, I find the advent of Deenar, the gold-backed stablecoin within Cosmos’ ecosystem, nothing short of revolutionary. Having witnessed the tumultuous tides of the crypto market, I can attest to the allure of stability in an otherwise volatile landscape.

In a recent development, Deenar – the initial token backed by gold within the Cosmos network – was activated on the HAQQ Network, a blockchain emphasizing ethics that caters to the global Muslim community. This move effectively brings real-world gold onto the digital platform, thereby introducing innovative liquidity options for Cosmos users and providing millions of Muslims with an opportunity to invest in this secure asset while adhering to Islamic ethical guidelines.

What’s the Deal with Gold-Backed Stablecoins?

Cryptocurrency is synonymous with volatility. It has allowed millions to build fortunes while leaving many investors with considerable losses. 

For individuals looking for investment security, classic assets such as precious metals or real estate have often appeared as the most appealing options. Throughout history, gold has been utilized as a way to preserve value and facilitate trade, and over the last century, it has demonstrated its worth as an exceptional investment choice that consistently generates solid returns while remaining unaffected by broader economic fluctuations.

Image: Deenar

As a seasoned investor with years of experience under my belt, I can attest to the challenges that come with investing in physical gold. Throughout my career, I have witnessed many individuals express interest in adding gold to their portfolios but ultimately shy away due to its perceived complexities.

Gold-backed digital currencies tackle this issue, combining the reliability of gold with the speed of blockchain technology. These digital coins are backed by actual gold held securely in vaults by authorized custodians, making ownership equivalent to owning physical gold. Transacting with these gold-backed stablecoins is as straightforward as dealing with any other cryptocurrency.

As a researcher delving into the world of digital currencies, I witnessed an unprecedented surge in the development of gold-backed stablecoins during 2024. Among these newcomers, Tether introduced aUSDT, a gold-backed stablecoin that is backed by XAUt – their own gold token. Most recently, Deenar made its debut on the HAQQ Network, marking itself as the first gold-backed stablecoin within the Cosmos ecosystem.

What is Deenar?

As a crypto investor, I’m excited about Deenar – the first gold-backed stablecoin on Cosmos. The HAQQ Network has launched this token to bring the benefits of real-world assets into this bustling ecosystem. Each Deenar token represents ownership of one gram of gold, thanks to its 1:1 backing with gold. In essence, this brings gold onto the blockchain, enhancing value and opening up new investment avenues for users and projects within Cosmos.

In simpler terms, Deenar offers an investment platform for approximately 2 billion Muslims globally, where they can invest according to Islamic moral guidelines. The term “Deen” signifies the Muslims’ lifestyle, which includes their beliefs, values, and behavior, while “dinar” originally referred to gold coins used as a form of savings in Arabic nations. Combined, these concepts embody the idea that Deenar is a digital currency that adheres to Islamic law, making it a legitimate asset for investment.

Approximately 800 million Muslim individuals globally lack access to traditional banking services. This is partly due to the fact that banks in numerous Asian and African nations don’t comply with Shariah, Islamic law – for instance, they permit the accumulation of interest, which is deemed immoral in Islam. Consequently, a significant number of Muslims choose to bypass conventional financial institutions. Furthermore, banking access in many developing countries is obstructed by inadequate infrastructure, low income levels among the populace, and regulatory hurdles.

Under these circumstances, Deenar presents a secure choice for millions of Muslims, enabling them to invest effortlessly while adhering to Islamic guidelines. Deenar’s investment platform has received endorsement from Shariah scholars, as attested by a fatwa approval.

How Deenar Works

Deenar coins are produced by Fiduciary Standard, a Swiss-based stablecoin issuer that has been licensed. The total number of Deenar tokens is 12,000, and each token corresponds to one gram of physically held 999.9 gold stored securely in Dubai’s Brinks vaults, which specializes in global valuables management.

To acquire Deenar tokens, you should first establish a HAQQ digital wallet and link it to the Sushi decentralized trading platform. Once connected, you can either purchase DEEN directly or exchange USDT or ISLM for the token. Since the HAQQ Network prioritizes scalability, transactions will be processed swiftly, and gas fees will typically not exceed a penny.

Deenar was designed according to the ERC-20 standard on the HAQQ Network blockchain, making it compatible with all wallets that support ERC-20 tokens, both on HAQQ and Ethereum. Moreover, since HAQQ Network is part of the Cosmos ecosystem, DEEN is also recognized as a Cosmos IBC token. This means that users can easily transfer DEEN across other Cosmos-based blockchains using the Inter-Blockchain Communication (IBC) method.

In this project, each DEEN token owner’s on-chain address corresponds to a unique gold bar stored in vaults. The owners can find the serial number of their specific gold bar on the project’s website. Additionally, if a user accumulates enough tokens, they have the option to exchange these for real physical gold. To claim the gold bar, users must contact the Deenar team via email for a delivery quote and complete a KYC process.

In this system, every DEEN transaction is processed through the HAQQ blockchain, following the guidelines of smart contracts. This setup helps minimize human mistakes, while also promoting transparency and robust security.

Benefits of Physical Gold On Chain

In the Cosmos network, Deenar serves as the pioneering digital asset backed by gold, thereby creating numerous possibilities for participants within the industry.

As a seasoned investor who has dabbled in traditional markets for years, I’ve come to appreciate the unique opportunities that digital assets offer. My latest discovery, Deenar (DEEN), is a game-changer in my book. Coming from a diverse investment background, I understand the challenges of investing in physical assets like gold – the logistics, storage, and high minimum investment requirements can be daunting.

Regarding both long-term investments and everyday usage, Deenar Gold offers a diverse group of market players an opportunity to capitalize on the convenience, fluidity, and openness that gold provides within the digital realm.

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2024-08-12 16:08