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SDAX launches first-of-its-kind securitised gold tokens

Khairani Afifi Noordin
Khairani Afifi Noordin • 2 min read
SDAX launches first-of-its-kind securitised gold tokens
Owners are able to trade gold tokens for physical settlement with qualified market makers through the SDAX platform. Photo: Bloomberg
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Singapore-based digital assets exchange SDAX has partnered with Oman’s Muscat Precious Metals Refining Company to launch a tokenised gold product on its platform.

The MPMT Gold Token allows investors to acquire gold tokens in a securitised form, issued by an independent trust and backed by physical gold bullion held in vaults at Le Freeport at Changi. This provides investors with an easier way to gain exposure without having to find storage methods for the physical bullions.

A first-of-its-kind, the securitised tokens enable investors to buy and hold a beneficial ownership interest in a specified quantity of gold legally held by an independent trust for the investors. This is compared to other gold investment options such exchange-traded funds (ETFs) or bank issued depository gold certificates, where the gold is owned by the ETF provider or the bank.

Owners are also able to trade gold tokens for physical settlement with qualified market makers through the SDAX platform.

“As gold prices continue to trade at record highs and with macro-economic forecasts supporting a likely continued trend, we thought it was the perfect time to offer a gold product exclusively to our SDAX users that was unique and not currently available in the market,” says SDAX CEO Rachel Chia.

The MPMT Gold Token is only available to accredited investors and institutional investors on the SDAX Exchange platform.

See also: Actualising US$16 tril real-world asset tokenisation a long but 'noble' process

 

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