not sure if correct but I heard HSBC don't back those coins with gold. someone published a doco from HSBC confirming this but I can't be 100% sure who is right as some still claim those digital coins are backed by physical gold.
from what I read is that the digital coin holder can't convert that coin/token into physical. which means... those digital coins could be backed by physical gold but one can't go to the bank and convert them into real gold they are still type of paper gold - to my understanding.
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