Australia’s largest precious metal refinery, the Perth Mint, and InfiniGold, a fintech startup focused on precious metals digitization, have jointly launched a gold-backed digital token.

The new ERC-20 token is dubbed Perth Mint Gold Token (PMGT) and pegged 1:1 with GoldPass certificates issued by the Perth Mint, according to a press release shared with Cointelegraph on Oct. 11. GoldPass lets investors purchase, sell and transfer physical gold through digital certificates, where each certificate is 100% backed by Perth Mint gold stored in its network of central bank grade vaults.

The “first” government-backed digital gold token on a public ledger

The release claims PMGT to be the first digital gold token on a public blockchain backed by government-guaranteed gold, explaining:

“The real-time liquidity of PMGT is provided by market makers and enabled via The Perth Mint GoldPass platform where users can sell back to The Perth Mint, or take delivery of their holdings by exchanging their GoldPass certificates for a range of the Mint’s gold products, including LBMA London Good Delivery (LGD) bars. Subject to final regulatory consultation, this will make PMGT directly tradable against traditional gold products, including gold ETFs, CME gold futures, and physical XAU.”

Richard Hayes, CEO of the Perth Mint, called the digitization of gold through a public ledger “a natural progression for the global commodity markets,” further suggesting that such a process will promote gold as a mainstream asset and increase its accessibility, among other things.

Increasing interest in gold-backed crypto

As Cointelegraph reported recently, stablecoin operator Paxos launched PAX Gold (PAXG), a gold-backed Ethereum (ETH) token, claiming that it is “the first crypto-asset redeemable for physical gold.” Each PAXG token will reportedly be backed by one fine troy ounce of London Good Delivery gold stored in professional vault facilities in London.

In late May, Russia’s central bank, the Bank of Russia, said that it may be interested in creating a gold-pegged cryptocurrency for conducting mutual settlements with global jurisdictions.