InfiniGold, an Australian blockchain startup focused on precious metals tokenization, and the Perth Mint, the world’s largest refiner of newly-mined gold, on Friday the 11th day of October 2019 jointly announced the launch of the Perth Mint Gold Token (PMGT).
Via a press release issued by InfiGold and published on the Perth Mint website, PMGT, which is issued by Infini Gold, is revealed to be an ERC-20 compatible token that is backed 1:1 by GoldPass certificates issued by the Perth Mint. Every GoldPass certificate is 100% backed with physical gold stored at the Perth Mint’s network of vaults, with every ounce of gold in these vaults guaranteed by the Government of Western Australia.
This simply means that PMGT represents tokenization of GoldPass certificates, which makes them “available on a public blockchain where investors, traders and institutions can buy and sell them on Digital Asset Exchanges.” One PMGT token is equivalent to a “1 oz GoldPass certificate”, which is equivalent to one troy ounce of physical gold.
It is easy to exchange PMGT tokens for GoldPass certificates and vice versa. Such exchanges are performed by InfiniGold.
Note that “the Perth Mint does not guarantee the InfiniGold issued Perth Mint Gold Token (PMGT) or its operation on the blockchain”; instead, what it does is “guarantees the gold securely held by it that backs all GoldPass certificates.”
Richard Hayes, the CEO of the Perth Mint, said:
We’re delighted to be working with InfiniGold and offer safe storage for the physical gold we will supply and hold, as our role as custodian through GoldPass certificates. 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.