A gold-backed cryptocurrency has reportedly been launched in Iran. The new currency was developed by blockchain startup Ghoghnoos Company in consultation with four Iranian banks: Bank Mellat, Bank Melli Iran, Bank Pasargad, and Persian Bank. It will also see listing on an over-the-counter (OTC) crypto exchange called Iran Fara Bourse as well.

According to the Financial Tribune, the asset, named PayMon, stems from the Persian word for “covenant” and is set to be issued a total of one billion tokens initially. As quoted by Valiollah Fatemi, Director at Ghoghnoos, the cryptocurrency is believed to tokenize the financial institutions’ assets and properties in order to facilitate domestic and cross-border transactions.

The move comes months after the country’s effort to launch its first state-backed cryptocurrency in order to bypass its economic and financial restrictions imposed by the Trump administration last summer, reported by The Crypto Sight. Payment networks such as that of SWIFT no longer offers services in Iran. The gold-backed cryptocurrency, therefore, will serve as an alternative to SWIFT which allows Iran to join a blockchain-based international payments system.

Last week, the Central Bank of Iran issued a draft report saying that it may seek to block the use of unapproved cryptocurrencies as a means of payment. However, there is no direct restriction imposed on individuals engaged in holding or transferring small amounts of approved cryptocurrency. In addition, ICOs and cryptocurrency wallets are now allowed in the country.