10/10/2019 - 16:56

Perth Mint launches token offering

10/10/2019 - 16:56

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The Perth Mint has today announced the launch of a gold token, partnering with fintech startup InfiniGold to launch the world’s first gold token guaranteed by a sovereign entity.

Perth Mint launches token offering
PMGT will be backed by Goldpass digital certificates issued by the Perth Mint. Photo: Attila Csaszar

The Perth Mint has today announced the launch of a gold token, partnering with fintech startup InfiniGold to launch the world’s first gold token guaranteed by a sovereign entity.

A digitised gold offering, the Perth Mint Gold Token (PMGT) will give institutional investors an alternative to traditional gold products, such as gold ETFs, as well as an alternative to existing USD-backed stablecoins.

Speaking to Business News, Perth Mint chief executive Richard Hayes said the PMGT was a logical step in its existing offering of digital certificates.

“What this does is provide the opportunity for those that are active on the digital wallet to easily convert other holdings they might have to what we call stablecoin,” he said.

“There are number of privately owned, USD-backed stablecoins out there at the moment.

“The difference with PMGT on the blockchain is that it is tethered to the underlying price of physical gold that’s all stored in the Mint.

“The gold is guaranteed by the WA government, making it a very safe and very secure alternate to other stablecoin alternatives on blockchain.”

The Perth Mint began digitising its inventory in 2018 when it launched its GoldPass platform, which allows users to trade physical gold via digital certificates.

PMGT will be backed by Goldpass digital certificates issued by the Perth Mint, with the intention to make the token tradable against traditional gold products pending regulatory consideration.

Mr Hayes said that gold had become an increasingly mainstream asset since the GFC, in part because it remains stable in times of economic uncertainty.

“Often you’ll see these days smart investors will have a percentage of their net worth in precious metals,” he said.

“What we’ve done is taken a traditional asset that has held its value, and utilised it as a point of reference for stability through a digital offering.”

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