Home Crypto News Another Gold Stablecoin Backed by Perth Mint as 2020 Turmoil Continues

Another Gold Stablecoin Backed by Perth Mint as 2020 Turmoil Continues

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A cryptocurrency trade consortium recognized as the Universal Protocol Alliance has launched a brand new gold-backed stablecoin that’s pegged to gold assured by the Western Australian Perth Mint, which is owned by the Australian authorities.

The consortium, which counts Bittrex Global, Ledger, CertiK, and Uphold amongst its members, has dubbed the token as ‘Universal Gold’, or UPXAU. The token will be bought for an funding as low as $1; there aren’t any limits on what number of tokens will be purchased. The tokens additionally haven’t any holding charges, as many extra conventional gold funding merchandise do.

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JP Thierot, chief govt of Uphold, informed CoinTelegraph that “the Universal Gold project has been in the making for quite some time,” and that one of many Alliance’s largest traders is “a prominent goldbug” who helped to develop the Alliance’s relationship to the Perth Mint.

“The Perth Mint is the largest refiner of new gold in the world, and is owned by the Government of Western Australia, which guarantees all the gold it holds in the same way the FDIC guarantees US dollars held in American banks,” Thierot defined.

The Association has additionally described the coin as being imminently spendable: Forbes reported that as quickly as an investor buys some UPXAU, “she can spend parts of it using her Uphold credit card, or take physical delivery.”

UPXAU isn’t the Perth Mint’s first gold-backed crypto token

The token is considerably comparable in nature to the Perth Mint Gold Token (PMGT), which was launched by Australian fintech agency Infinigold final yr. The gold backing PMGT can be assured by the federal government of Western Australia, which owns the Perth Mint. Therefore, when PMGT launched, the corporate claimed that its coin was “the world’s first sovereign gold digital token.”

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At the time of PMGT’s launch, Richard Hayes, chief govt of the Perth Mint, stated that “the digitization 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.”

JP Thierot, chief govt of Uphold.

Global turmoil has introduced elevated consideration to gold

There appears to be an elevated stage of consideration on gold-backed stablecoins as a results of the financial instability that the COVID-19 pandemic has induced around the globe.

In January of this yr, a report by Bitcoin.com discovered that there are not less than 77 of those gold-backed tasks at the moment on the books regardless of the truth that not less than 30 comparable tasks have failed over the course of the final ten years.

Since January, plenty of new gold-backed stablecoins have continued to launch, together with Tether’s XAUT, one other gold-backed stablecoin that was launched in February.

As international tensions have continued to develop all year long, the value of gold has elevated from roughly $1,530 on January 1st to round $1,980 at press time.

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