Major Gold Refiner Launches New Stablecoin Backed By Gold On Ethereum Blockchain

The Perth Mint, one of the world’s biggest gold refiners accounting for 10% of global output, has launched a new digital token backed by gold, in collaboration with metals digitization company, InfiniGold. According to an official press release, the asset, called the Perth Mint Gold Token (PMGT) will be backed 1:1 by Perth Mint issued GoldPass certificates.

The new PMGT will give interested users worldwide, the opportunity to purchase and own gold with a trusted supplier, without having to worry about holding gold assets physically. Investors are also welcome to trade the PMGT, as a worthy enough substitute to gold ETFs and other related products, on a fully secure and transparent blockchain platform.

The Perth Mint CEO, Richard Hayes, has expressed excitement at the new partnership with InifiniGold, as well as the opportunities it offers as it combines digital technology via blockchain, with a product as real as gold. According to Hayes:

“We’re delighted to be working with InfiniGold and offer safe storage for the physical gold we will supply and hold, as our role as custodian through GoldPass certificates. The digitization of gold via a public ledger is a natural progression for the global commodity markets. It will promote gold as a mainstream asset, enhance its accessibility, and offer greater liquidity, transparency and auditability of the real assets backing this type of digital token.”

The PMGT is an ERC-20 token which was also created to offer some level of stability as might be absent in the industry which is all too known for its general market volatility. Plans are also underway to receive proper regulatory approval, to make the PMGT “directly tradable” with other regular gold products including gold futures as offered by the Chicago Mercantile Exchange (CME), as well as gold exchange traded funds (ETF).

InfiniGold CEO, Andreas Ruf, has also spoken about the asset, promising security and stability:

“With The Perth Mint as custodian of the underlying physical gold that backs PMGT, buyers will be able to access a secure and reliable token representing the strongest asset class to date – gold.”

The token will also be a also be a substitute to other stablecoins backed by gold or the USD, as well as a worthy enough competition for Paxos, which also recently launched a gold-backed token called PAX Gold (PAXG).

Image Credits: Pixabay

Leave a Reply

Your email address will not be published. Required fields are marked *