Australian Government-Owned Refinery Backs Digital Gold Tokens ‘PMGT’

Wilfred Michael 

Wilfred Michael

News reporter

11 October 2019,
19:25
Australian Government-Owned Refinery Backs Digital Gold Tokens ‘PMGT’

The Perth Mint, a government-owned entity that refines 90% of the country’s gold reserve has partnered with precious metal tokenization startup, Infinigold to launch tokens backed 1:1 by real gold.

Per a press release by Infinigold, the new tokens called “Perth Mint Gold Tokens (PGMT)” has been issued on the public Ethereum blockchain, thus allowing users to conveniently acquire and have entitlement over government-guaranteed physical gold stored at The Perth Mint.

The partners believe that the new tokens also offer investors an alternative to other traditional derivatives such as a gold ETF since the new PMGT tokens would offer real-time trading and settlement enabled by blockchain technology.

Further explaining how the system works, the release noted that when users buy PGMT tokens via the GoldPass app, they get a digital certificate representing their ownership of gold at The Perth Mint.

Then, they can freely trade their tokens on the app using a buy-and-sell option or decide to redeem their digital certificates “for a range of the Mint’s gold products, including LBMA London Good Delivery (LGD) bars.”

There also plans pending regulatory permission to make the tokens tradable against other gold products, as well as, the chance that PMGT tokens serve as an alternative to fiat-pegged stablecoins such as Tether (USDT) traded on crypto exchanges.

Sharing his thoughts on the release regarding other benefits of PMGT, Richard Hayes, Chief Executive Officer of The Perth Mint said it would “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.”

While Infinigold and The Perth Mint has arguably released the industry’s first truly gold-backed token, it is not the first time that the idea of pegging a crypto token to gold has made headlines.

In May, Stmarket.co reported that the Bank of Russia will likely review the possibility of issuing a cryptocurrency that has its value linked to the prices of gold according to Central Bank Head, Elvira Nabiullina.

 

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