Deenar: A Gold-Backed Stablecoin, Providing Shariah-Compliant Investment Options
Stablecoins come in various formats. Many of the most popular stablecoins are backed by the United States dollar and offer a decentralized method of holding fiat currency. However, there are also stablecoins backed by other cryptocurrencies, algorithms, and even gold. Gold-backed stablecoins have seen quite an uptick, with prominent projects like Tether getting involved.
Gold-pegged stablecoins track and are tied to the value of physical gold. While one can always invest in physical gold itself, the process is cumbersome and requires quite a few steps. Stablecoins allow anyone to invest in the value of gold with little effort — the most accessible way to invest in the precious metal.
Deenar, the first gold-backed stablecoin within the Cosmos network, is a project looking to innovate on the asset class.
Deenar is part of the HAQQ ecosystem, which is built on Cosmos. The project aims to enhance the ownership of real-world assets (RWAs) like gold through blockchain technology, providing users with a store of value that’s easily accessible via a cryptocurrency. Deenar is compatible with the rest of the HAQQ network, meaning that investments in DEEN can spread to other HAQQ projects.
Every Deenar Gold (DEEN) token is backed 1:1 by a gram of real gold. Brinks asset management stores the physical gold in Dubai-based vaults, and Deenar is planning its first Shariah audit to verify the gold via a third party.
Dennar’s gold-backed stablecoin provides additional utility to the value of gold, allowing investors to buy it in fractional amounts. Such an opportunity brings old forms of investment into the modern fintech area with more capabilities than ever before.
Boasting a Shariah advisory board, Deenar is 100% Shariah-compliant. All of
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