Australia’s largest valuable steel refinery, the Perth Mint, and InfiGold, a fintech startup targeted on valuable metals digitization, have collectively launched a gold-backed digital token.
The brand new ERC-20 token is dubbed Perth Mint Gold Token (PMGT) and pegged 1:1 with GoldPass certificates issued by the Perth Mint, based on a press launch shared with Cointelegraph on Oct. 11. GoldPass lets buyers buy, promote and switch bodily gold by digital certificates, the place every certificates is 100% backed by Perth Mint gold saved in its community of central financial institution grade vaults.
The “first” government-backed digital gold token on a public ledger
The discharge claims PMGT to be the primary digital gold token on a public blockchain backed by government-guaranteed gold, explaining:
“The true-time liquidity of PMGT is supplied by market makers and enabled through The Perth Mint GoldPass platform the place customers can promote again to The Perth Mint, or take supply of their holdings by exchanging their GoldPass certificates for a spread of the Mint’s gold merchandise, together with LBMA London Good Supply (LGD) bars. Topic to last regulatory session, it will make PMGT instantly tradable towards conventional gold merchandise, together with gold ETFs, CME gold futures, and bodily XAU.”
Richard Hayes, CEO of the Perth Mint, known as the digitization of gold by a public ledger “a pure development for the worldwide commodity markets,” additional suggesting that such a course of will promote gold as a mainstream asset and enhance its accessibility, amongst different issues.
Rising curiosity in gold-backed crypto
As Cointelegraph reported lately, stablecoin operator Paxos launched PAX Gold (PAXG), a gold-backed Ethereum (ETH) token, claiming that it’s “the primary crypto-asset redeemable for bodily gold.” Every PAXG token will reportedly be backed by one advantageous troy ounce of London Good Supply gold saved in skilled vault services in London.
In late Could, Russia’s central financial institution, the Financial institution of Russia, mentioned that it could be keen on making a gold-pegged cryptocurrency for conducting mutual settlements with international jurisdictions.