The token will have its value equal to that of one ounce of gold on the London Bullion Market Association (LBMA) exchange. GoldMint plans to buy, sell and repurchase ‘GOLD’ at the current market price for physical gold, using exchange-traded funds (ETF) or physical gold (of 999 quality) as its security.
With this project, the company aims to access 1% of global gold circulation (which is over 300 tons) by launching a Custody Bot automated storage facility in pawnshops around the world. Traders and other cryptocurrency enthusiasts may use ‘GOLD’ to hedge their gold commodity with ‘GOLD’ on any cryptocurrency trading exchange, without leaving that particular platform. The company also recommends ‘GOLD’ as a means to purchase and transport physical gold.
Goldmint will initially target Asia and Eastern Europe, then India and UAE where their Custody Bot and the gold-backed crypto asset will be very in-demand, the team told EWDN, the publication that first announced ColdMint’s project. Still, Goldmint needs to establish the legal status of ‘GOLD’ in different countries.
This story first appeared on East-West Digital News, the international online resource on Russian digital industries.
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