| Wednesday, 25 May 2022 |
Tokenised is your weekly read to navigate and mine the rich vein of crypto developments that flow through India and Southeast Asia. Subscribe here
Good morning [%first_name |Dear Reader%],
Welcome to this week’s edition of Tokenised.
Have you ever thought about paying a mining company to stop mining stuff? I admit, it seems counterintuitive, but that’s exactly what a Singapore-based blockchain startup is doing using tokens.
Nature’s Vault LLC has acquired the mining rights for an area with gold deposits in Canada. But instead of extracting it, it plans to sell tokens that represent the underground treasure. While the company bills this as an environmentally conscious way to get exposure to gold, the investment also requires significant leaps of faith. My colleague Nadine went to the “pre-launch” event for this token and has a fascinating story for you today.
Let’s jump right in.
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Gold-backed tokens. No mining required
Gold-backed tokens aren’t a novel idea.
The best-known are probably PAX Gold (PAXG) and Tether Gold (XAUT), which have a combined market capitalisation of over US$1 billion. And they follow a simple concept—each token represents a physical amount of gold that’s accounted for and stored somewhere secure.
