{"investigation":{"slug":"dgld","entity_name":"DGLD","trust_score":42,"severity_base":null,"score_modifier":0,"confidence":0.62,"status":"published","content_type":"investigation","summary":"DGLD (Digital Gold Token) is a physically-backed gold token originally launched in October 2019 by a consortium of CoinShares, Blockchain.com, and MKS PAMP SA on CommerceBlock's Ocean Bitcoin sidechain. The project went dormant by 2020 due to liquidity failure and market under-adoption, and the underlying infrastructure provider CommerceBlock later shut down entirely. MKS PAMP relaunched DGLD in late 2025 under full ownership of Gold Token SA, migrating to Ethereum and Base — but significant jurisdictional restrictions, minimal liquidity, contractual liability exclusions, and the project's history of abandonment remain concerns.","sections":[{"content":"DGLD launched on October 15, 2019, as a consortium effort between CoinShares International, Blockchain.com, and MKS (Switzerland) SA. The token was designed to represent allocated physical gold stored in PAMP-certified Swiss vaults. FINMA issued a ruling on February 22, 2019, classifying DGLD as a payment token — not a security — under Swiss law. The project was built atop CommerceBlock's Ocean Bitcoin sidechain, using the MainStay protocol to attest block hashes to the Bitcoin blockchain. Despite the infrastructure and regulatory groundwork, the token failed to gain meaningful market traction. The project went dormant by 2020 and remained inactive for approximately six years.","heading":"Background and Project History","sources":[{"url":"https://bitcoinmagazine.com/technical/coinshares-blockchain-launches-digital-gold-token-on-bitcoin-sidechain","name":"bitcoinmagazine.com","type":"other","credibility":3},{"url":"https://www.theblock.co/post/43306/coinshares-jointly-rolls-out-a-gold-token-dgld-built-on-the-bitcoin-network","name":"theblock.co","type":"other","credibility":3},{"url":"https://www.mkspamp.com/official-launch-dgld","name":"mkspamp.com","type":"other","credibility":3}],"severity":"medium"},{"content":"After launching in October 2019, DGLD's trading activity dried up rapidly. More critically, the underlying blockchain infrastructure provided by CommerceBlock subsequently shut down entirely. A wrapped ERC-20 version (wDGLD, contract 0x123151402076fc819B7564510989e475c9cD93CA) was deployed on Ethereum but also saw negligible volume. The token experienced a price drop of nearly 75% at its worst period relative to short-term highs, trading with no reported 24-hour volume for extended stretches.","heading":"Dormancy, Liquidity Failure, and Infrastructure Collapse","sources":[{"url":"https://cryptorank.io/news/feed/5dab6-mks-pamp-revives-crypto-gold-token-dgld","name":"cryptorank.io","type":"other","credibility":3},{"url":"https://www.cryptopolitan.com/mks-pamp-revives-crypto-gold-token-dgld/","name":"cryptopolitan.com","type":"other","credibility":3},{"url":"https://etherscan.io/token/0x123151402076fc819B7564510989e475c9cD93CA","name":"etherscan.io","type":"other","credibility":3}],"severity":"medium"},{"content":"In November 2025, MKS PAMP S.A. announced it had acquired full ownership of Gold Token SA (GTSA). DGLD relaunched on Base network via Aerodrome Finance on December 16, 2025, with liquidity managed by Arrakis Finance and approximately $20 million in tokenized gold. Structural concerns persist: new token issuance is restricted to accredited institutions only; the token does not target US, Canadian, or EU/EEA persons on a solicited basis; GTSA operates under VQF (a FINMA-supervised SRO), which is a lower tier of oversight than primary regulators such as NYDFS.","heading":"2025 Relaunch and Structural Concerns","sources":[{"url":"https://www.mkspamp.com/mks-pamp-acquires-full-ownership-gold-token-sa-relaunch-leading-real-world-asset-backed-tokenized","name":"mkspamp.com","type":"other","credibility":3},{"url":"https://www.prnewswire.com/news-releases/dgld-the-only-gold-token-backed-by-60-years-of-swiss-precious-metals-heritage-launches-on-base-network-via-aerodrome-302643330.html","name":"prnewswire.com","type":"other","credibility":3}],"severity":"medium"},{"content":"DGLD's General Terms and Conditions contain significant risk disclosures. The terms acknowledge 'an inherent risk that the underlying blockchain, the smart contracts thereon, as well as any related technologies or concepts contain weaknesses, vulnerabilities or bugs causing, inter alia, the complete loss of DGLD.' All liability for direct or indirect damages is 'excluded to the furthest extent permitted by law.' GTSA reserves the unilateral right to freeze wallet addresses, modify redemption processes, terminate platform operations, and amend terms with as little as 14 days' notice.","heading":"Terms of Service Risk Disclosures","sources":[{"url":"https://dgld.ch/legal/general-terms-conditions-dgld-2","name":"dgld.ch","type":"other","credibility":3}],"severity":"medium"},{"content":"DGLD operates in the tokenized gold sector against PAX Gold (PAXG, ~$1.6B market cap, NYDFS-regulated) and Tether Gold (XAUT, ~$2.2B market cap). DGLD holds a market cap in the low single-digit millions with near-zero daily trading volume for extended periods. The token is not listed on major CEXes such as Binance. For US persons, PAXG remains the only tokenized gold product with direct US regulatory oversight.","heading":"Competitive Positioning and Market Liquidity","sources":[{"url":"https://bitsz.io/blog/top-5/gold-stablecoins-2026","name":"bitsz.io","type":"other","credibility":3},{"url":"https://cryptorank.io/news/feed/5dab6-mks-pamp-revives-crypto-gold-token-dgld","name":"cryptorank.io","type":"other","credibility":3}],"severity":"medium"},{"content":"MKS PAMP and Gold Token SA assert each DGLD token corresponds to a specific allocated PAMP-certified gold bar held in Swiss vaults, with a 'bar mapper' tool on the DGLD website. Gold holdings are described as subject to independent audits and as bankruptcy-remote. MKS PAMP describes itself as one of only three LBMA/LPPM-approved Good Delivery Referees globally. However, custody and audit claims for the original 2019 DGLD were never independently verified at scale during the six-year dormancy period.","heading":"Custodial and Transparency Claims","sources":[{"url":"https://dgld.ch/about-us","name":"dgld.ch","type":"other","credibility":3},{"url":"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-dgld/","name":"bitstamp.net","type":"other","credibility":3}],"severity":"medium"},{"content":"On-chain investigator ZachXBT has flagged DGLD for investigation. The specific findings or basis for the flag have not been independently confirmed through publicly available posts at the time of this investigation. The flag may relate to the project's history of abandonment, the infrastructure collapse of the original CommerceBlock Ocean sidechain, concerns about the relaunched token's restricted access and liquidity profile, or other undisclosed findings. Users should treat this flag as warranting heightened due diligence.","heading":"ZachXBT Flag","sources":[{"url":"https://en.wikipedia.org/wiki/ZachXBT","name":"en.wikipedia.org","type":"other","credibility":3}],"severity":"medium"}],"timeline":[{"date":"2019-02-22","event":"FINMA issues ruling classifying DGLD as a payment token under Swiss law.","source":""},{"date":"2019-10-15","event":"DGLD launches on CommerceBlock's Ocean Bitcoin sidechain backed by ~$20M in physical gold.","source":""},{"date":"2020","event":"Trading activity declines significantly; project moves toward dormancy.","source":"","date_original":"2020-01-01"},{"date":"2021","event":"DGLD effectively dormant. CommerceBlock, the Ocean sidechain operator, ceases operations.","source":"","date_original":"2021-01-01"},{"date":"2025-11-20","event":"MKS PAMP S.A. acquires full ownership of Gold Token S.A. and announces relaunch of DGLD.","source":""},{"date":"2025-12-16","event":"DGLD relaunches on Base network via Aerodrome Finance; issuance restricted to accredited institutions.","source":""}],"sources_used":[{"url":"https://bitcoinmagazine.com/technical/coinshares-blockchain-launches-digital-gold-token-on-bitcoin-sidechain","name":"bitcoinmagazine.com","type":"other","archive_url":"http://web.archive.org/web/20260510042814/https://bitcoinmagazine.com/technical/coinshares-blockchain-launches-digital-gold-token-on-bitcoin-sidechain","credibility":3,"archive_timestamp":"2026-05-10T04:28:14+00:00"},{"url":"https://www.theblock.co/post/43306/coinshares-jointly-rolls-out-a-gold-token-dgld-built-on-the-bitcoin-network","name":"theblock.co","type":"other","archive_url":null,"credibility":3,"archive_error":"error:no-request","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://www.mkspamp.com/official-launch-dgld","name":"mkspamp.com","type":"other","archive_url":"http://web.archive.org/web/20251205205739/https://www.mkspamp.com/official-launch-dgld","credibility":3,"archive_timestamp":"2025-12-05T20:57:39+00:00"},{"url":"https://cryptorank.io/news/feed/5dab6-mks-pamp-revives-crypto-gold-token-dgld","name":"cryptorank.io","type":"other","archive_url":"https://web.archive.org/web/20260830032422/https://cryptorank.io/news/feed/5dab6-mks-pamp-revives-crypto-gold-token-dgld","credibility":3,"archive_timestamp":"2026-08-30T03:24:22+00:00"},{"url":"https://www.cryptopolitan.com/mks-pamp-revives-crypto-gold-token-dgld/","name":"cryptopolitan.com","type":"other","archive_url":"http://web.archive.org/web/20260114171916/https://www.cryptopolitan.com/mks-pamp-revives-crypto-gold-token-dgld/","credibility":3,"archive_timestamp":"2026-01-14T17:19:16+00:00"},{"url":"https://etherscan.io/token/0x123151402076fc819B7564510989e475c9cD93CA","name":"etherscan.io","type":"other","archive_url":"https://web.archive.org/web/20260829032641/https://etherscan.io/token/0x123151402076fc819B7564510989e475c9cD93CA","credibility":3,"archive_timestamp":"2026-08-29T03:26:41+00:00"},{"url":"https://www.mkspamp.com/mks-pamp-acquires-full-ownership-gold-token-sa-relaunch-leading-real-world-asset-backed-tokenized","name":"mkspamp.com","type":"other","archive_url":"http://web.archive.org/web/20260312222459/https://www.mkspamp.com/mks-pamp-acquires-full-ownership-gold-token-sa-relaunch-leading-real-world-asset-backed-tokenized","credibility":3,"archive_timestamp":"2026-03-12T22:24:59+00:00"},{"url":"https://www.prnewswire.com/news-releases/dgld-the-only-gold-token-backed-by-60-years-of-swiss-precious-metals-heritage-launches-on-base-network-via-aerodrome-302643330.html","name":"prnewswire.com","type":"other","archive_url":"http://web.archive.org/web/20251222001046/https://www.prnewswire.com/news-releases/dgld-the-only-gold-token-backed-by-60-years-of-swiss-precious-metals-heritage-launches-on-base-network-via-aerodrome-302643330.html","credibility":3,"archive_timestamp":"2025-12-22T00:10:46+00:00"},{"url":"https://dgld.ch/legal/general-terms-conditions-dgld-2","name":"dgld.ch","type":"other","archive_url":"http://web.archive.org/web/20260519070142/https://dgld.ch/legal/general-terms-conditions-dgld-2","credibility":3,"archive_timestamp":"2026-05-19T07:01:42+00:00"},{"url":"https://bitsz.io/blog/top-5/gold-stablecoins-2026","name":"bitsz.io","type":"other","archive_url":"http://web.archive.org/web/20260829073530/https://bitsz.io/blog/top-5/gold-stablecoins-2026","credibility":3,"archive_timestamp":"2026-08-29T07:35:30+00:00"},{"url":"https://dgld.ch/about-us","name":"dgld.ch","type":"other","archive_url":"http://web.archive.org/web/20260519070628/https://dgld.ch/about-us","credibility":3,"archive_timestamp":"2026-05-19T07:06:28+00:00"},{"url":"https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-dgld/","name":"bitstamp.net","type":"other","archive_url":"http://web.archive.org/web/20260122014002/https://www.bitstamp.net/learn/cryptocurrency-guide/what-is-dgld/","credibility":3,"archive_timestamp":"2026-01-22T01:40:02+00:00"},{"url":"https://en.wikipedia.org/wiki/ZachXBT","name":"en.wikipedia.org","type":"other","archive_url":"http://web.archive.org/web/20260711020137/https://en.wikipedia.org/wiki/ZachXBT","credibility":3,"archive_timestamp":"2026-07-11T02:01:37+00:00"}],"source_tags":["defillama"],"addresses":[],"reviewed":false,"reviewed_by":null,"model_used":"claude-sonnet-4-5","created_at":"2026-05-04T02:54:18.661477+00:00","updated_at":"2026-08-30T03:54:58.721338+00:00"}}