Global Payout, a US-based electronic payment and prepaid card solutions provider, has formed a joint venture with Singapore-based AUX Technology to launch a self-directed and gold-backed currency hedge mechanism linked with a debit card for consumers and investors.
Known as the AUX Prepaid Gold Card, the card will provide gold investors the ability to convert their gold bullion investments into the OFAC compliant, FOREX currency of their choice during ATM cash withdrawals or merchant purchases.
The card is aimed at providing immediate liquidity of deposited gold as an alternative to fiat currencies as well as offers consumers the ability to back their own paper currency values via the use of their own gold creating a 100% gold backed currency mechanism.
The card will be rolled out initially in non-US countries that comply with OFAC compliance requirements.
As part of the agreement, Global Payout has received a 33% equity ownership in the Asian financial technology company AUX.
Global Payout CEO Jim Hancock said: "We feel our partners at AUX have come up with a gold asset-backing and liquidity mechanism whose time has come. And we are expecting significant interest in this product from a variety of sources around the world."