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Singapore unveils world’s first securitized gold tokens
Securitization provides MPMT Gold Token investors with increased protection
The Asset 18 Apr 2024

Singapore’s digital assets exchange SDAX, in partnership with Oman-based Muscat Precious Metals Refining Company, has expanded its product offering to include a first-of-its-kind tokenized gold product.

The MPMT Gold Token offers investors increased protection, being in a securitized form and issued by an independent trust. It is backed by physical gold bullion held in secure vaults at Le Freeport, Singapore.

The product offers investors an easier way to gain exposure to gold, without having to find storage methods for housing the physical bullion. Owners are also able to trade gold tokens for physical settlement with qualified market makers through the SDAX platform.

“We saw an opportunity in the market to make owning gold through tokenization a much more secure proposition for investors. These securitized tokens confer an additional layer of safety, allowing investors greater peace of mind about their investments,” says SDAX chief executive officer Rachel Chia.

With spot gold prices sitting at record highs, investors are presently faced with a multitude of gold investment options. By securitizing the gold tokens, SDAX is providing investors with a convenient, reliable, and secure alternative investment approach.

The securitized tokens allow investors to acquire and hold a beneficial ownership interest in a specified quantity of gold legally held by an independent trust for the investors. This is different from other gold investment options like exchange-traded funds (ETFs) or bank-issued depository gold certificates where the gold is owned by the ETF provider or the bank.

The MPMT Gold Token was created with the assistance of global law firm Clifford Chance, London, global trustee APEX, with Jin Huang Bullion as bullion agent and Hydra X as custodian. Walkers advised on the product and offering with respect to Cayman Islands law. BTPLaw provided advice on the tokens from a Singapore law perspective.

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

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