Swiss-based commodities fund Tiberius Group announced its plans to launch cryptocurrency the Tiberius coin, or tcoin, underpinned by physically deliverable metals including industrials such as aluminum and copper in July, its co-founder and chief executive Christoph Eibl said.
The coin will be backed by industrial metals stored in London Metal Exchange warehouses and precious metals held at selected refineries and will, like most other cryptocurrencies, be run on a blockchain platform, said Eibl.
We want to propose the idea of a cryptocurrency with real tangible net worth.
Co-founder and chief executive, Tiberius Group
Some experts believe that the tcoin may have a higher chance of success than previous digital coin offerings which have struggled to take off because Tiberius is an established player in the metals' industry.
Tiberius plans to register its currency with regulators, first in Switzerland and then more widely, in an effort to minimize the risk of shutdown or restriction by authorities.
More coins backed by either a single metal or a combination could be launched at a later date, Eibl said.
However, Tiberius coin will not be the first cryptocurrency underpinned by assets. Gold-backed currencies such as DigixGlobal in Singapore and Goldmint in Russia are already in place. Others backed by real estate and diamonds are in development and Venezuela plans a cryptocurrency backed by oil, gas, gold and diamond reserves.