October 10, 2019 / 1:59 PM / 10 days ago

InfiniGold to launch digital token backed by Perth Mint gold

FILE PHOTO: A statue which depicts miners striking gold stands in front of the Perth Mint in this May 25, 2008 file photo. REUTERS/Tim Wimborne

LONDON (Reuters) - Fintech firm InfiniGold said on Thursday it would launch a digital token backed by gold stored in the vaults of Australia’s Perth Mint, one of the world’s largest precious metals refiners.

The token will join a growing number of crypto coins whose value is underpinned by physical gold, such as DigixGlobal in Singapore and Goldmint in Russia.

These aim to tap into the booming popularity of cryptocurrencies while avoiding the extreme volatility of digital coins such as bitcoin.

InfiniGold said the gold used to back the token would be guaranteed by the government of Western Australia, which owns the Perth Mint. That makes it “the world’s first sovereign gold digital token,” it said.

Other mints have shied away from the largely unregulated world of cryptocurrencies. Reuters reported last year that Britain’s Royal Mint had frozen plans for a digital gold token after the UK government vetoed a plan to have the tokens trade on a cryptocurrency exchange.

Reporting by Peter Hobson

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