Australia’s largest treasured steel refinery, the Perth Mint, and InfiGold, a fintech startup targeted on treasured metals digitization, have collectively launched a gold-backed digital token.
The new ERC-20 token is dubbed Perth Mint Gold Token (PMGT) and pegged 1:1 with GoldCross certificates issued by the Perth Mint, in line with a press launch shared with Cointelegraph on Oct. 11. GoldCross lets buyers buy, promote and switch bodily gold via 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 launch claims PMGT to be the primary digital gold token on a public blockchain backed by government-guaranteed gold, explaining:
“The real-time liquidity of PMGT is provided by market makers and enabled via The Perth Mint GoldPass platform where users can sell back to The Perth Mint, or take delivery of their holdings by exchanging their GoldPass certificates for a range of the Mint’s gold products, including LBMA London Good Delivery (LGD) bars. Subject to final regulatory consultation, this will make PMGT directly tradable against traditional gold products, including gold ETFs, CME gold futures, and physical XAU.”
Richard Hayes, CEO of the Perth Mint, known as the digitization of gold via a public ledger “a natural progression for the global commodity markets,” additional suggesting that such a course of will promote gold as a mainstream asset and improve its accessibility, amongst different issues.
Increasing curiosity in gold-backed crypto
As Cointelegraph reported just lately, stablecoin operator Paxos launched PAX Gold (PAXG), a gold-backed Ethereum (ETH) token, claiming that it’s “the first crypto-asset redeemable for physical gold.” Each PAXG token will reportedly be backed by one advantageous troy ounce of London Good Delivery gold saved in skilled vault amenities in London.
In late May, Russia’s central financial institution, the Bank of Russia, mentioned that it could be inquisitive about making a gold-pegged cryptocurrency for conducting mutual settlements with world jurisdictions.