T Skevington and M Bacina
Perth Mint tokenising gold with InfiniGold
The Perth Mint, which processes and distributes over AUD$18 billion in precious metals each year, has developed a platform which enables investors to buy, store and sell tokenised gold. The GoldPass app, developed using InfiniGold technology uses the Perth Mint Gold Token (PMGT).
The Perth Mint and InfiniGold are hesitant to describe PMGT as tokens or crypto, instead using the phrase "digital certificates". Semantics aside, both parties emphasise that all PMGT is backed by physical gold, and users can apparently send gold in real time to other GoldPass users, or redeem their digital certificates for physical gold or cash. A user's holdings are visible in the app’s interface along with any cash available, similar to how balances are seen on online banking systems.
A key limitation of this product would appear to be that, while users can purchase and move gold within the app, they cannot withdraw any token representing the gold or transact with it outside of the app. This would seem to deprive customers of any ability to borrow against their gold holdings or otherwise use it, but this should not be seen to discount the ability for users to move in and out of gold holdings swiftly via the app.
Discussing GoldPass, Perth Mint chief executive officer Richard Hayes said:
Our aim is to make gold accessible to as many people in as many places as we possibly can in the easiest way possible
While there are many other gold tokenisation projects in the pipeline, Richard Hayes claims that the GoldPass project is a world first, because:
there is physical gold that backs every unit and that gold is not only guaranteed by the government of Western Australia, but it is also physically stored through our network of central bank-grade vaults in Perth.
The Perth Mint is backed by a state government guarantee, via section 22 of the Gold Corporation Act 1987 (WA).