Home / Technology / An Australian government just launched a gold-backed Ethereum token

An Australian government just launched a gold-backed Ethereum token

Australia's Perth Mint, one of the world's largest refineries, is today launching a gold-backed Ethereum ETH token guaranteed by the Government of Western Australia.

Marketing materials shared with Hard Fork claim the Perth Mint Gold token PMGT)

"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

Ethereum blockchain used to digitize government gold

The token is part of a campaign to digitize the Perth Mint's inventory. The Mint is wholly owned by the Western Australian Government.

The Endeavor began in late 201

8 when it launched GoldPass in collaboration with local fintech startup InfiniGold a mobile app that allows investors to instantly buy, sell, Physical gold mint gold certificates and physical gold certificates.

Physical Perth Mint. The digitization of gold via a public ledger is a natural progression for global commodity markets, "said Perth Mint CEO Richard Hayes. "It wants to promote gold as a mainstream asset, to enhance its accessibility, and to provide more liquidity, transparency and auditability of the digital assets."

The firm is angling PMGT as an alternative to USD-backed stablecoins.

Many of these kinds of stablecoins have failed before. It hopes the tokens will make one day tradable with traditional products like gold ETFs and CME gold futures.

It's certainly cool that a sovereign government looks confident enough to deploy it on a public blockchain like Ethereum, but those involved should remain cautious

Back in June, Hard Fork reported that two-thirds of failed stablecoin projects have been launched since 2017.

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Published October 10, 2019 – 12:59 UTC

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