HelloGold, a Kuala Lumpur based start that has built a mobile platform for buying and selling investments in gold, announced today that it has raised a Series A funding from 500 Startups.
The money will be used to integrate and test the implementation of blockchain into the system. Blockchain makes sense for this kind of platform as it theoretically could be used to make every transaction a unique ‘contract’ that can be independently verified.
Furthermore, the company has launched a digital token called GOLDX, a ERC-20 token the startup has pegged to gold. What this does is allow people to make transactions outside of the platform. Without the crypto tokens, the app is a self-contained wallet.
HelloGold plans to migrate it’s network to the Ethereum blockchain in the second half of 2018. Robin Lee, the Co-founder and CEO thinks the blockchain will allow the company to scale more quickly.
“We’re honoured to have 500 Startups support HelloGold as we use blockchain to reduce barriers and accelerate access to more affordable financial products in Asia. By integrating blockchain into the HelloGold platform, customers will benefit from greater transparency, better security, and greater flexibility,” he said.
The app works by making buying/selling gold as simple as buying stocks online. Users have an online wallet that allows users to deposit ringgit. They then can use this money to purchase gold by the gram.
The app updates the price of gold by gram so people can decide when to buy/sell with just a couple of clicks on their app.
“We recognised HelloGold’s potential early on and nominated them to the TenxClub, an initiative by the Malaysian Ministry of Finance to support Malaysian startups with demonstrated ability to grow quickly and scale internationally,” said Khailee Ng, a Managing Partner at 500 Startups in a statement.
“Our investment in HelloGold aligns well with our global initiatives such as the new Blockchain Track launched in San Francisco in March.”
HelloGold is a shariah-compliant company, which means it follows a certain set of standards governed by how Islamic Law views the relationship between religion and money.
Shariah-compliant fintech companies have become an increasingly commonplace feature of the Southeast Asian startup community in recent years.
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