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SDAX Unveils World’s First Securitised Gold Tokens for Digital Exchange Users
- SDAX partners with Muscat Precious Metals Refining Company LLC to launch MPMT Gold Token.
- Gold tokens in a securitised format issued by an independent trust and backed by physical bullion.
SINGAPORE, April 24, 2024 /PRNewswire/ — SDAX, Singapore’s leading Digital Assets Exchange, has expanded its product offering to include a first of its kind tokenised gold product. In partnership with the Oman-based Muscat Precious Metals Refining Company LLC, the MPMT Gold Token offers investors a gold token in a securitised form, unlike other gold token offerings currently available in the market.
The MPMT Gold Tokens, which are available exclusively on the SDAX Exchange platform offer investors increased protection, being in a securitised form and issued by an independent trust and backed by physical gold bullion held in secure vaults at Le Freeport, Singapore.
This product uses securitisation techniques and offers investors who are seeking 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.
Commenting on the launch, SDAX CEO, Rachel Chia said, “We saw an opportunity in the market to make owning gold through tokenisation a much more secure proposition for investors. These securitised tokens confer an additional layer of safety, allowing investors greater peace of mind about their investments.”
With spot gold prices sitting at record highs, investors are presently faced with a multitude of gold investment options. By securitising the gold tokens, SDAX is providing investors with a convenient, reliable, and most importantly, secure alternative investment approach. The securitised tokens allow for 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 compared to 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.
“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,” Chia added.
In partnership with the Muscat Precious Metals Refining Company LLC, Oman’s first precious metals trading company that specialises in a range of commodities including gold, silver, and platinum, SDAX is able to provide gold tokens at scale and speed.
“We are excited to be part of this new offering that allows investors to gain secure exposure to the gold market through the MPMT Gold Token. As gold prices rise, driven by safe-haven demand, central bank buying and rising geopolitical risks, it is important for investors to have options, which is why we are happy to work with SDAX on this compelling gold investment alternative. This partnership with SDAX will also allow us to reach a wider base of sophisticated investors on the SDAX platform,” said Muscat Precious Metals Refining Company LLC CEO, Shihab Al Busaidi.
The MPMT Gold Token was created with the assistance of global law firm Clifford Chance LLP, London, global trustee APEX, Jin Huang Bullion as bullion agents, and Hydra X as custodian. Walkers advised on the product and offering with respect to Cayman Islands law. BTPLaw LLC provided advice on the tokens from a Singapore law perspective.
Clifford Chance London Securitisation Partner, Kevin Ingram commented: “This product shows how securitisation techniques can add value to new concepts for the benefit of participants. We are delighted to be involved in the creation of this exciting product.”
“Hydra X is delighted to partner with SDAX and to provide custodial services and technology solutions to facilitate the tokenisation of real-world assets such as gold. This initiative reflects our commitment to making investment opportunities more accessible and leading the way in setting new standards in a blockchain-enabled, regulated digital asset landscape,” added Wee Hao Ng, COO, Hydra X.
The MPMT Gold Token is only available to accredited investors and institutional investors exclusively on the SDAX Exchange platform. For more information on the MPMT Gold Token, visit www.sdax.co/gold.
ABOUT SDAX
Based in Singapore, SDAX is a globally connected, integrated digital financial services platform offering a comprehensive suite of investment opportunities for asset owners and investors to benefit from the world’s private markets. Regulated by the Monetary Authority of Singapore, SDAX’s exchange platform offers opportunities to access exclusive investments from its ecosystem and secondary market trading via its digital asset exchange.
With SDAX, investors access curated investment opportunities across private equities, funds, real estate and alternatives which have passed SDAX’s rigorous due diligence process. SDAX connects markets through partnerships with participants in North America, the United Kingdom, Europe and the Asia Pacific region, delivering a seamless and efficient cross-border digital assets ecosystem for wealth creation.
SDAX is supported by shareholders with established track records in their respective fields: ESR, the largest real asset manager in APAC; PSA International, Singapore’s leading port group; The Straits Trading Company, renowned Singapore conglomerate-investment company; and multi-disciplinary professional services group, RHT Group of Companies.
For more information, visit https://www.sdax.co/.
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