The label says precious metals, and RAAC points to gold still in the ground. Yet the balance in a wallet is minted by Treasury, repriced by a contract stack and redeemable on-chain only against sUSDS that someone else deposited. The biography lives in that distance.
RAAC built pmUSD around ION.au, an asset associated with I-ON Digital. Its whitepaper calls each unit one ounce of in-situ gold and applies an 80% discount to spot, presenting a 5:1 reserve ratio.
That is RAAC’s collateral and valuation claim. I-ON’s SEC filing confirms that ION.au supports pmUSD collateral and pricing, but it does not identify a segregated ounce for each token or promise holders priority over I-ON, RAAC or a custodian.
The market deposits a base token into Treasury and divides its economic exposure. pmUSD occupies the stable fraction; xPM takes the residual gain and first loss from gold-price movement. RAAC says it internalizes that volatile position rather than distributing it widely.
The verified token calculates NAV from Treasury’s base-token balance and reported price divided by fractional supply. A pmUSD unit is therefore a claim implemented by the stack’s accounting rules, not a warehouse receipt redeemable for one fixed ounce.
The public collateral page advertised LBMA pricing and proof-of-reserve verification. On 5 September 2026 it rendered zeros and “N/A”, so readers could inspect the model but not a usable current attestation.
Treasury alone can mint pmUSD, burn it from any address and update NAV inputs. The current implementation has no dedicated freeze, pause or blacklist function, but arbitrary-address burn is a stronger direct balance control than an ordinary allowance-based burn.
The token is also a TransparentUpgradeableProxy. Its implementation was 0x32d9…41d8 and its ProxyAdmin 0x89ab…2ce2 on review day. ProxyAdmin and Treasury shared owner 0xca31…f13c, so present code behavior and future code behavior are distinct risk questions.
RAAC launched a separate PSM in April 2026. sUSDS depositors supply the reserve; pmUSD users may swap one way into that reserve at an internal $1 value, paying 25 basis points under the published launch parameters.
The rate path values sUSDS through its ERC-4626 exchange rate and a Chainlink USDS/USD feed with 86,400-second staleness. There is no separate pmUSD/USD oracle in the parameter sheet. Reserve floors, NAV checks, a circuit breaker and guardian pause mean the quoted rule is not unlimited liquidity.
The same multisig initially held governance, guardian and admin roles. A March audit noted that powerful module, rate-provider and fee setters lacked a timelock; its resolved findings describe a code snapshot, not permanent solvency.
On 19 May 2026 RAAC announced agreements intended to let eligible non-U.S. users redeem through APMEX and Kitco, with a July target. The announcement remained conditional on legal and onboarding work.
RAAC’s 6 August report said the physical route was delayed and an $8 million facility was still being built. The same report put July’s average market price near $0.65 and month-end near $0.42, despite RAAC’s stated $121.98 million collateral figure.
Those numbers do not prove the collateral absent. They show that a valuation claim, an on-chain reserve exit and an enforceable property right are different things. The reviewed terms leave smart-contract and counterparty failure with users and do not grant direct title to the gold story beneath the token.
The exact CoinGecko contract is created as RAAC’s upgradeable FractionalToken.
Pashov’s review covers PSM code and notes instant governance setters without a timelock.
RAAC opens a reserve-funded, one-way pmUSD-to-sUSDS exit.
RAAC names APMEX and Kitco and targets the week of 6 July, subject to onboarding and law.
Its July review says redemption is delayed and pmUSD ended the month near $0.42.
Last evidence review: 2026-09-05
pmUSD is the fractional, price-stabilized side of RAAC’s f(x)-based gold market on Ethereum. RAAC says ION.au represents in-situ gold and xPM takes the volatile residual. The token itself is an upgradeable ERC-20 balance whose live exits and legal rights must be read separately from that collateral story.
“Gold-backed” can hide three different questions: what asset enters Treasury, how the stable fraction is priced, and what a holder can demand. RAAC publishes a collateral model, but its dashboard did not show a current proof-of-reserve answer on review day and its terms did not convey title to identified gold.
Treasury alone mints and burns pmUSD and supplies the base-token price used for NAV. A separate PSM lets pmUSD move one way into reserve sUSDS at an internal $1 value, less 25 basis points, while circuit breakers and liquidity can stop the route. Physical dealer redemption was announced but later reported delayed.
The reviewed terms and contracts do not grant title to a named ounce, ION.au unit, mineral interest or custodied bar.
RAAC maps one ION.au to one ounce of in-situ gold and discounts spot value by 80%; its public dashboard did not display a usable current reserve answer on review day.
The PSM offered a one-way swap into available sUSDS at an internal $1 value less fees. That route depends on reserve and circuit-breaker conditions.
RAAC announced dealer agreements in May 2026, but its August report said the facility was still delayed. No unconditional holder right was found.
No protocol yield attaches to holding pmUSD itself. PSM shares and liquidity positions are separate products with separate risks.
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