Challenge coins have a rich history dating back to ancient times, but their modern origin is traced back to the military practices of the early 20th century.

It is believed that challenge coins originated during World War I, when American soldiers were stationed in France.

The story goes that a wealthy lieutenant had bronze medallions created for members of his unit as a token of their camaraderie and to commemorate their service together. One of the soldiers carried his medallion in a leather pouch around his neck, and it saved his life when he was captured by the enemy and later escaped to find friendly forces.

Upon returning to his unit, the soldier showed his coin as proof of his identity, and the tradition of carrying a coin as a sign of loyalty and camaraderie was born.

Over time, challenge coins became a way for military units to identify and recognize their members, as well as to boost morale and strengthen bonds between soldiers.

Coins were typically designed with the unit's emblem or insignia on one side and a personal message or motto on the other.

Coins were often presented to soldiers as a reward for excellence or bravery, and they were also used as a way to settle disputes or "challenge" one another.

Today, challenge coins are widely used by military units, law enforcement agencies, companies, and other organisations to recognise and reward members for their service and achievements.

They are also used as a way to raise awareness and funds for charitable causes, and they have become highly collectible items among enthusiasts.

The tradition of challenge coins continues to evolve and adapt to modern times, but its roots in military service and camaraderie remain strong.