Wednesday, January 10, 2018

U.S. company announced intention to create a gold backed cryptocurrency that would be regulated as a security by the SEC

On Jan. 10, IEG Holdings Corporation announced they were negotiating the purchase of a gold project which would become the collateral for a new gold backed cryptocurrency.

Intending to collaborate with a company called Investment Evolution Corporation, IEG will seek to use metals from their gold project to create a gold backed cryptocurrency that would then be regulated as a security with the SEC.

In essence, a non-decentralized gold backed crypto.

Graphic courtesy of BTC Manager
IEG Holdings Corporation ("IEG Holdings") (OTCQB: IEGH) announced today that its wholly owned subsidiary, Investment Evolution Crypto, LLC ("Crypto"), is negotiating to purchase a gold project with gold metal in the ground and prospecting licenses. IEG Holdings plans to utilize a gold resource to investigate creating, through Crypto, and a joint venture with Investment Evolution Corporation, also a wholly owned subsidiary of IEG Holdings, its own gold metal-backed crypto/blockchain currency, and potentially offer loans and accept loan repayments in its own crypto/blockchain currency. 
Paul Mathieson, IEG Holdings' Chairman and Chief Executive Officer, said, "Unlike Bitcoin, Ripple, Ethereum and Litecoin etc., IEGH's crypto currency is planned to be backed by gold metal and registered with the SEC as a security. We believe potentially combining the exciting new blockchain technology with the hard asset of gold metal, expected SEC registration, a leading sophisticated online consumer finance system and individual US state lending licenses is a very exciting proposition. – Business Insider
One of the obvious benefits of building a regulated gold backed cryptocurrency is that it opens the security up for investment by institutions, hedge funds, IRA's, and 401K's. 

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