The world is becoming more digital than ever. After paper currencies were valued and assigned to gold, these paper currencies turned into digital currencies with their value linked to the value of gold.

Below we will learn about five digital currencies whose value is linked to gold:

1- PMGT coin:

The “PMGT” coin is an abbreviation for the designation “The Perth Mint Gold Token”, which is a currency whose value is linked to the value of the gold that is mined in the Australian city of Perth, as the purity and weight of gold is guaranteed by the government, with the issuance of digital gold certificates through the “GoldPass” application “.

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These certificates are then used to back the PMGT tokens. Each token is backed by the certificates in a 1:1 ratio and traded on crypto exchanges like KuCoin. With no custody, storage and insurance fees, the PMGT tokens are A cost-effective gold asset and a competitive alternative to traditional gold products, such as gold ETFs and gold bank transfers, PMGT is also exchangeable with traditional gold markets.

Through InfiniGold, the amount of Gold Support for each PMGT can be checked in real time against the balance of GoldPass accounts published by the Perth Mint.

This means that coin holders do not have to wait for monthly reviews to find out that the tokens are 100% fully backed.

Andreas Ruff, CEO of InfiniGold spoke about the value of backing digital tokens with government-verified physical gold bars:

As The Perth Mint is the world’s largest freshly mined gold refinery, we have had an unprecedented depth of liquidity to introduce to the market using the Perth Mint Gold Tokens, as we did not simply buy two bars of gold, put them in a vault, and then We coded them, and the billions of dollars worth of gold stored in “The Perth Mint” could even be tapped.

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PMGT coins can be fully exchanged for physical gold, although the liquidity is low.

2- DGX Coin:

The gold-backed cryptocurrency “DGX” tokens are provided by Singapore-based DigixGlobal. Each token represents one gram of gold held in vaults in Canada and Singapore. The vaults are fully certified and secured by the Bullion Association.

DGX tokens are actively working to make gold bars divisible, redeemable and transferable by buying and selling digital tokens. The creators of DigixGlobal designed this process to democratically digitize access to gold. There is a 1% fee to exchange tokens for physical gold, and the company bears Demurrage fees, which are the cost of storing gold.

“Digix Gold” tokens are trading with a market cap of just under $6 million.

3- PAXG Coin:

Paxos, a New York-based company, issues “PAXG” tokens backed by one ounce (t oz) of 400 gold ounces stored in Brink’s vaults in London.

Paxos holds the base gold, with full ownership rights to the token holder.

Paxos is obligated by US law to support “PAXG” tokens with mandatory capital reserves. The supervisors of Pax Gold coin launched the token as “ERC-20” on the Ethereum blockchain. Replaced with gold plates approved by “LBMA” in London.

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The value of the cryptocurrency backed by gold “PAXG” is approximately $32 million.

4- XAUT coin:

Perhaps one of the most famous currencies whose value is based on the value of gold, the currency is issued by “Tether” also known as the issuance of the “USDT” stablecoin based on the dollar.

XAUT coins are officially offered by TG Commodities Limited and backed by one ounce of gold.

Tether gold reserves are kept in a Swiss vault, and token holders can look up the serial number of their gold bars assigned to them via the Tether website. Tether also allows investors to obtain physical gold or exchange it for cash.

The gold-backed cryptocurrency tokens “XAUT” reside on the Tron and Ethereum blockchains, and users can track transactions on block explorers such as Etherscan.

Currently, there are just under 4,000 tokens on the market, giving it a market cap of around $6 million. Bitfinex was the first exchange to list “XAUT.”

5- Meld Gold Coin:

Australian startup Meld Gold has partnered with the Algorand blockchain to create a decentralized gold token.

The technology company has created a digital platform that plans to change the way gold is bought and sold, as Meld Gold will be integrated into the existing gold supply chain to offer faster gold trading and settlement through the digitization process.

The platform is designed so that investors can deal with both physical gold and digital gold, Meld Gold Director Michael Cotton spoke about the platform’s advantages for those already working in the gold industry, saying:

We will bring transparency to the gold market for the first time by connecting buyers and sellers directly on a digital platform. The gold market currently provides limited access and little visibility into its supply chain, making trading time consuming, expensive and inefficient.

Peter August, CEO of Melbourne Mint, said:

Meld Gold wants to use blockchain technology not only to match the actual gold market but to improve it.

As for the benefits of gold-backed cryptocurrencies, holders of gold-backed digital currencies have the ability to own gold while avoiding the drawbacks associated with physical gold, including storage costs and limited access.

Despite all this, gold-backed stablecoins are still a small part of the cryptocurrency market, with dollar-backed stablecoins taking a larger role in the crypto market.

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