Lionsgold Ltd (LON:LION) roared into action on Wednesday afternoon after the fintech-cum-gold explorer updated investors on the development of its Goldbloc digital currency.
The AIM-quoted firm has been working on a digital currency backed by real gold for some time now under its majority-owned subsidiary TRAC technology.
The aim of Goldbloc is to give customers the “convenience and utility” of a normal bank account albeit one that is backed by physical gold.
Each Goldbloc unit will represent 1/1000 of a gram of physical gold – worth around 3p based on current spot prices – and will be divisible by two decimal places.
The ultimate goal is for Goldbloc to become a gold-backed digital currency and banking platform.
Obviously anything to do with banking comes with strict rules and regulations, so TRAC has partnered with Railsbank and will integrate its platform and accounts ledger with Railsbank’s banking and compliance platform.
“We are delighted to be able to announce Goldbloc which we have been developing within Lionsgold's fintech subsidiary,” said Lionsgold chief executive Cameron Parry.
“Goldbloc is designed to be used as a gold-backed digital currency and banking platform, to enable individuals to hold their wealth securely in gold and spend their gold with the convenience of everyday banking.”
He added: "We are also pleased to report that TRAC's CEO Ralph Hazell is working with Nigel Verdon (founder of Currency Cloud) and his Railsbank co-founder Clive Mitchell and their team to utilise the Railsbank global banking and compliance platform.”
Lionsgold said market research on Goldbloc is being carried out next month ahead of the initial product launch towards the end of the year.
Shares jumped 10.4% to 0.8p on the back of the announcement.