Crypto market fluctuations have become more unpredictable as Cryptocurrencies mature and become less volatile. For instance, in 2019, major events such as the launch of Bitcoin Futures by Bakkt, the launch of Libra Coin or Telegram’s Gram Token, etc. are not triggering reactions in the market.
Hence, the prospects for Stablecoins is becoming more popular as experts are starting to consider that commodity-backed Tokens could give Cryptos the stability that is needed to endear them to corporates and retail users seeking alternative currencies to centralized Fiat money.
In this regard, InfiniGold and Perth Gold Mint are jointly releasing a new Stablecoin codenamed Perth Mint Gold Token (PMGT). The model of the Token is such that real-time gold value will be used to stabilize the Token against a reserve for each unit deployed.
Digitizing Precious Metals
InfiniGold and Perth Mint are facilitating the implementation of the project. The two Australian companies are assuring prospective investors a one of a kind Crypto that they hope to implement after a rigorous roadmap.
Concerning capacity, the two firms can sustain and deliver the Crypto since Perth Mint refines precious metals such as gold. Since this company is offering a platform for providing gold, its solutions can be used to back up Digital Tokens.
On the other hand, InfiniGold is a fintech startup that focuses on digitizing precious metals. This operational model is essential in transforming precious metals transactions by removing third parties.
The Gold-Pegged Token
Codenamed, Perth Mint Gold Token (PMGT), the Stablecoin is backed by gold as the name suggests. It is an ERC-20 Crypto which means that it can be stored in a variety of Ethereum wallets. Additionally, PMGT can be transacted on Blockchain platforms built on the Ethereum Enterprise code which are widely common.
The Stablecoin is pegged on gold on a 1.1 ratio. Traders of gold are issued with a digital certificate by The Perth Mint GoldPass which acts as a proof-of-work on the ecosystem. A corresponding PMGT Coin is then issued where it is fully backed by gold. Therefore, investors can sell, buy, and transfer gold without moving an ounce of gold.
Meanwhile, the gold is stored in bank-grade vaults that are secure and transparent.
Revolutionizing The Gold Market
With the full implementation of the project, PMGT will be used to facilitate transactions in the gold market and overhaul physical XAU, CME gold futures, and gold ETFs. Hence in the future, it will be possible to transact LBMA London Good Delivery (LGD) bars against GoldPass certificates whose unit of account is PMGT.
Richard Hayes, Perth Mint CEO, is confident that gold could soon be a mainstream currency if PMGT adoption goes as planned.