This is not the first cryptoactive that has been backed by gold.

One of the largest refineries on the planet, Mint Perth, recently announced the launch of a new token in Ethereum that will be backed by gold and will be officially supported by the Australian government. This is only another step in the adoption of cryptocurrencies.

It is known, thanks to public data collected by Hard Fork, that now the asset called Perth Mint Gold Token (PMGT) will be the first token classified in this area of ​​public blockchain networks that will be backed by a government constituted as the one of Australia. In this way, users will have a direct livelihood with the State reserves.

Regarding the announcement of the launch, the company informed that it established a new purpose, so this will be a powerful tool which will work as an alternative to certain gold products, helping to negotiate and liquidate quickly and in real time.

“It offers institutional investors a competitive alternative to traditional gold products, such as gold ETFs, with the additional real-time negotiation and settlement benefits, thanks to blockchain technologies”, the announcement says.

A Way to Digitalize Gold

The Perth Mint token, which belongs to the Australian government, has taken this plan to digitize gold to the blockchain field. It sees this opportunity as the most appropriate to protect the campaign.

This gold digitalization project began in the middle of 2018, when an application called GoldPass was launched, something that helped investors interested in marketing gold to buy, sell and transfer gold through the use of digital authentication certificates.

These certificates are no more than an amount of real gold protected by the Australian government. These possession documents will be tokenized by the company and put into operation in the ERC-20 cryptoactive.

Richard Hayes, who is the Perth Mint’s CEO, said that digitizing gold will significantly improve liquidity, in addition to increasing transparency in negotiations with gold, also enabling an option with a great audit system.

“The digitalization of gold through a public account is a natural progression for global commodity markets. It will promote gold as the main asset, improve its accessibility and offer greater liquidity, transparency and auditability of the real assets that support this type of digital token”, he said.

In addition to this, it is known that the token will have a value similar to the one of market. Marketing materials will indicate the value, which will determine the liquidity of PMGT, this will be possible thanks to market designers. It will also be authorized through the GoldPass platform.

Not everything went well for projects similar to the one that Mint Perth has launched, since last June, Hard Fork reported that the stablecoin projects that were started in 2017, that also were backed by gold, resulted to be completely failed.

Every project is different and this is the opportunity to develop a new token backed by gold.

By María Rodríguez


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