The UK government has blocked a Royal Mint plan to create a “digital gold” token that would trade on a cryptocurrency exchange.

According to sources cited in Reuters, the British finance ministry refused to approve the 1,100-year old Mint’s plans to issue as much as $1 billion worth of “Royal Mint Gold” (RMG) tokens, which would have been backed by gold assets stored in the the government-owned Mint’s vaults.

Initially, The Royal Mint had planned to list the tokens on a blockchain-based exchange operated by U.S. derivatives exchange CME, which also manages the largest regulated bitcoin futures market. However, the CME backed out of the partnership just prior to the scheduled launch date late last year, delaying the project and forcing the Mint to pursue a cryptocurrency exchange listing to save the project.

“Sadly, due to market conditions this did not prove possible at this time, but we will revisit this if and when market conditions are right,” a Mint spokesperson was cited as saying.

CCN had first reported the Royal Mint’s plans to create a blockchain asset back in 2016.

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