Australia’s state-owned mint The Perth Mint which is the world’s largest refiner of newly mined gold is launching the world’s first government-sponsored 1:1 gold-backed cryptocurrency with the help of precious metal digitisation company InfiniGold. InfiniGold is a spinout from the Rozetta Ventures and a part of the Rozetta group of companies. The token will be christened the Perth Mint Gold Token (PMGT).
The PGMT was launched on the Ethereum (ETH) platform on Friday and is fully backed by GoldPass certificates issued by The Perth Mint. The digital certificates are gold-backed and guaranteed by the government of Western Australia being the sole owner of the 120-year old Mint.
A part of the Press release reads:
“PMGT is digitised gold that allows users to conveniently acquire and have entitlement over government guaranteed physical gold stored at The Perth Mint in a trusted and cost-effective way. It offers institutional investors a competitive alternative to traditional gold products such as gold ETFs, with the additional benefits of real-time trading and settlement enabled by blockchain technology. “
The project began in 2018 when the GoldPass was initially released by InfiniGold via a mobile application that allows investors to instantly buy and sell physical gold using digital certificates. Since then it has evolved and now we a digital currency that is backed by the same digital certificates but on the Ethereum blockchain. The token was designed with the assistance of industry giant Ernst and young and will act as an alternative to traditional investment products like ETfs with the help of blockchain technology and smart contracts on the ETH network. Andreas Ruf, CEO of InfiniGold said:
“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.”
Can PMGT be a better USDT?
This new token could easily be a solid replacement from the most used stable cryptocurrency by market cap, Tether (USDT). There are various controversies surrounding Tether which suggest that tether plays an important role in manipulating the price of the world’s number one cryptocurrency Bitcoin. Some reports have also stated that despite being a stable coin that calms to be fully dollar backed, it is not fully backed. Based on these grounds, InfiniGold said that PGMT offers its investors “superior transparency, credit quality, risk diversification and hedging against market volatility,” because it’s backed by gold which has a stable price.
Investors can seamlessly sell their PMGT tokens using the GoldPass platform or exchange them for other mint products. The company explained:
“Subject to final regulatory consultation, this will make PMGT directly tradable against traditional gold products, including gold ETFs, CME gold futures, and physical XAU.”
Perth Mint CEO, Richard Hayes said:
“The digitisation 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 launch comes at a time when there is a heavy demand for assets like Bitcoin and Gold as these can act as a safe haven for investors. With various controversies surrounding its competitors, PMGT could turn out to be a very popular game changer.