Introduction of XAUm: A New On-Chain Gold Token
- Matrixport’s RWA platform now features XAUm.
- XAUm is an innovative on-chain gold token compatible with Ethereum and BNB Chain.
- Officially launched on September 16, 2024.
Matrixdock is broadening its Real World Asset (RWA) offerings with the introduction of XAUm, an on-chain gold token that is fully collateralized by physical gold bars recognized by the London Bullion Market Association (LBMA). Each LBMA gold bar has a remarkable purity of 99.99%, as highlighted in a recent announcement by Matrixdock.
Token Details and Trading Support
XAUm will be issued as an ERC-20 token on the Ethereum network and also as a BEP-20 token on the BNB Chain. Its value is pegged at a ratio of 1:1 to a troy ounce of LBMA gold. The token can be traded using some of the largest stablecoins in the market, including USDT and USDC.
Fee Structure for Investors
Investors can take advantage of XAUm without incurring a management fee. However, a flat fee of 0.25% will be applied for both minting and redemption transactions. Matrixdock will manage the custody of gold in secure vaults.
Redemption Options
Users will have the flexibility to redeem XAUm either as stablecoins or as physical gold assets. To access physical gold redemption, customers must complete Know Your Customer (KYC) verification. Services for physical gold redemption are facilitated through Matrixport’s operations in Hong Kong and Singapore.
Growth of the RWA Market
The introduction of XAUm comes on the heels of the successful launch of the Short-term Treasury Bill Token (STBT), which allows accredited investors to invest in tokenized US Treasury bills, pegged 1:1 to the US dollar. According to data from RWA.xyz, the total on-chain value of real-world assets has reached an impressive $12.3 billion, with over 100 asset issuers currently in the marketplace.
Market Comparisons
The tokenized commodities sector, encompassing assets like on-chain gold, silver, and oil, has achieved a valuation of $994 million. Major players in this market include Paxos, Tether, Comtech Gold, Aurus, and WisdomTree.
Contrastingly, tokenized treasury products have outshined earlier figures, surpassing $2.4 billion in total market value. The leading issuers by market capitalization include BlackRock’s BUIDL, Franklin Templeton’s FOBXX, and Ondo Finance’s USDY.
