U.K. company with gold-backed Mastercard files for bankruptcy
(Kitco News) - A British fintech company that just launched its service to monetize gold in the U.S. this summer has become insolvent, according to government regulators.
On Friday, Financial Conduct Authority (FCA) announced that Jason Daniel Baker and Geoffrey Paul Rowley of FRP Advisory LLP were appointed as joint administrators of Glint.
U.K. Administration Law is similar to Chapter 11 bankruptcy law in the U.S. Under the Administration order, appointed administrators must act in the interests of all the creditors and attempt to rescue the company to meet its financial obligations.
It is unclear if customers of the company will be able to get their money back. The FCA said that under its rules Glint is obligated to safeguard its customer’s funds “protect customer money if a firm fails in a disorderly way.”
However, the FCA also noted that safeguarded funds are not protected by the Financial Services Compensation Scheme, the U.K. deposit insurance.
The news comes only two months after launching their gold-backed debit Mastercard in the U.S., one year after launching in Europe.
The fintech firm also attracted some major gold investors including Sprott Inc. In June, Glint Pay announced that Sprott became one of its biggest shareholders as it played a prominent role in a $6.35 million in a private placement.