In discussions within the crypto community, an interesting phenomenon has emerged—some projects are exploring a new type of stablecoin design on certain public blockchains, combining the advantages of traditional precious metals with blockchain technology.

Speaking of which, we have to mention the Ducat project. It gained attention on social platforms around September 2025, with a very unique positioning: not a common USD-pegged stablecoin (like USDT), but one directly linked to the physical gold price. The underlying logic of this design is quite straightforward—gold has been a store of value for thousands of years, used to hedge against volatility in the crypto markets and fiat currency devaluation.

**Why choose BCH?**

The reason Ducat is built on the BCH chain mainly lies in the characteristics of this blockchain. BCH adheres to the peer-to-peer electronic cash concept, with low transaction fees and fast confirmation speeds. Compared to networks with high gas fees, BCH is more suitable for everyday payment scenarios, not just speculative trading. With such infrastructure, a gold-backed stablecoin can truly become a practical tool.

**The technical details also look solid**

Ducat uses the SLP token format—which is a standard solution within certain blockchain ecosystems, making token creation, transfer, and management very straightforward. At the same time, the project emphasizes that its code and mechanisms are fully open, aligning with the decentralized philosophy. This transparency is especially important for assets linked to precious metals, which are sensitive in nature; users need to see the security mechanisms behind the system clearly.

**How is it different from other stablecoins?**

Most stablecoins on the market are either USD-backed (with good liquidity but reliant on the fiat system) or over-collateralized with crypto assets (which involves risks associated with the crypto itself). The gold standard stablecoin takes a third route—backed by physical gold. This means it is not entirely dependent on traditional financial systems and is less affected by crypto market sentiment. From a hedging perspective, this diversified stablecoin approach is beneficial for the entire ecosystem.

Someone asked, since gold prices can also fluctuate? Indeed, but gold’s volatility is much lower than Bitcoin or Ethereum, and its value proposition is older and more stable. In the long run, this can be a convincing store of value.

This project reflects a larger trend: the crypto ecosystem is exploring multi-dimensional stablecoin designs. It’s no longer just about the USD model but also about supporting stablecoins with assets like precious metals, energy, or even baskets of assets. Ducat’s experiment on BCH, to some extent, represents the direction of DeFi innovation—combining ancient financial concepts (the gold standard) with modern blockchain technology to see what sparks might fly.

Regardless of the ultimate success or failure, such explorations themselves are driving the industry’s thinking on stablecoin design.