Cardano and Kinka Gold (XNK): the launch of the new gold-backed token as a catalyst for the RWA market

News from Cardano, ready to host a new entry: the new token Kinka Gold (XNK), backed by gold and supported by Emurgo.

Cardano is integrating a new gold-backed token called Kinka Gold (XNK), aiming to catalyze the Real-World Asset (RWA) market and provide an alternative to fiat-backed stablecoins.

Emurgo, one of the founding entities of Cardano, is the technology provider behind Kinka Gold (XNK).

Kinka, a subsidiary of the Japanese stock exchange-listed neofinance services company UNBANKED, is bringing its bullion-grade on-chain gold to Cardano.

Each XNK token represents an ounce of premium Japanese gold that meets the London Bullion Market Association (LBMA) standards, intended for use on the Osaka Exchange and stored securely in remote vaults for resilience against any global failure.

This integration is part of a larger strategy to increase the liquidity and use cases of gold by integrating the yellow metal into the broader Cardano DeFi ecosystem, including use cases for loans, collateral, and payments.

In this partnership, Kinka Gold is aiming to catalyze the entry of other RWA tokens into the Cardano ecosystem. With XNK serving as a gold-backed stablecoin, it can pave the way for other assets to be represented and traded on Cardano.

Speaking on the partnership, UNBANKED Director Chris Lane had this to say:

“This partnership with Emurgo will launch the next generation of gold ownership. The XNK token is not limited to owning gold but uses it in completely new ways that help power the modern digital economy. Cardano’s low transaction fees and the immense support of its community create the perfect synergies to drive the on-chain movement.”

The tokenization of Kinka Gold on the Cardano blockchain will be executed on the Emurgo platform.

Recently, Charles Hoskinson announced that the upcoming crypto update Leios will transform the Cardano blockchain, making it faster than Solana.

This update is set to drastically increase the number of transactions the network can process, making it more competitive in the crypto space.

Specifically, Leios introduces innovations that optimize the transaction validation process, reducing waiting times and increasing the network's capacity to handle large volumes of data.

Moreover, the update aims to enhance the security and energy efficiency of the Cardano blockchain.

With these goals in mind, Hoskinson envisions a bright future for Cardano, where it can outpace even Solana and Ethereum in terms of performance.

At press time, Cardano (ADA) trades at $0.34, up 4% in the last 24 hours, and is ranked 11th by market capitalization. To surpass even Solana (SOL), which is currently in 5th place, ADA would need to quintuple in value.