Financial technology company Trovio terminates gold token PMGT business

On March 21, it was reported that the Singapore financial technology company Trovio ended its gold token PMGT business supported by gold due to its partner Perth Mint, an official Australian mint, allegedly violating Australian and US laws.

Interpretation of this information:

Trovio, a Singapore-based fintech company, has ended its gold token PMGT business after allegations that its partner, Perth Mint, violated Australian and US laws. PMGT, which was supported by gold, is a digital token that represents physical gold held in the Perth Mint’s vaults. Trovio’s decision was announced on March 21, 2021, and is seen as a significant setback for the company.

This development is a blow for Trovio, which had been hoping to establish itself as a leader in the gold-backed cryptocurrency market. The company had partnered with Perth Mint, which has a reputation for creating innovative and trusted gold products, in order to develop PMGT. The token was seen as a way for investors to buy and sell gold without having to deal with the complications of actually owning physical gold.

However, allegations that Perth Mint had violated Australian and US laws related to the sale of precious metals have led to Trovio pulling the plug on the project. It is not clear exactly what laws Perth Mint is accused of violating, but it is likely that the allegations relate to the way in which the company sold PMGT.

Trovio’s decision to end the PMGT business is likely to have a significant impact on the wider gold token market. Up until now, gold-backed digital tokens have been seen as a promising new investment opportunity, with several companies working on similar projects. However, the allegations against Perth Mint have raised serious questions about the legality of these tokens, and it is not clear how regulators will respond.

Despite this setback, Trovio is likely to continue to pursue new opportunities in the fintech space. The company has a strong track record of developing innovative products, and its expertise in blockchain technology is likely to be in high demand in the coming years.

In conclusion, it is a setback for Trovio, which has ended its gold token PMGT business due to allegations that its partner, Perth Mint violated Australian and US laws. This move is likely to have significant implications for the gold token market and raises questions about the legality of such tokens. The key takeaway is that Trovio is likely to continue to pursue opportunities in the fintech space, thanks to its strong expertise and track record in the field.