Royal Mint Gold
| Company type | Digital gold currency, Cryptocurrency |
|---|---|
| Industry | Finance, Cryptocurrency |
| Founded | 2017 |
| Fate | Discontinued in 2018 |
| Headquarters | United Kingdom |
| Products | Digital gold currency secured by physical gold reserves |
Royal Mint Gold represented a digital gold currency and cryptocurrency secured by gold reserves maintained by the UK's Royal Mint. Blockchain transaction trials commenced in April 2017, with the inaugural test transaction taking place in August 2017. The initial public launch was targeted for late 2017, with trading expected to be managed by the US-based CME Group. At its inception, the initiative bore similarities to an exchange-traded fund, comparable to ETF Securities' Physical Gold.
The initiative was discontinued in 2018 following CME's exit and the Royal Mint's reluctance to find a replacement trading partner.
Implementation
The platform utilized the open-source Prova blockchain, which operates on a proof-of-stake consensus mechanism to verify ownership of the underlying physical gold. The blockchain infrastructure was provided by BitGo.
Backing gold
The Royal Mint verified that all gold reserves were securely held within its vaults, serving exclusively as a sub-custodian without ownership claims. Physical delivery options were offered, subject to additional fabrication charges for quantities below a London Good Delivery bar (400 ounces, valued at approximately US$400,000 as of January 31, 2018).
Cancellation
In late October 2018, following a change in management at CME that resulted in their withdrawal, the UK Government terminated the Mint's cryptocurrency project due to the absence of a suitable trading platform.