Matrixport’s RWA platform launches new gold-backed token XAUm

Matrixport’s RWA platform launches new gold-backed token XAUm

By Benson Toti - min read
Updated 17 September 2024
  • Crypto services provider Matrixport’s RWA platform has announced the launch of XAUm
  • This is an on-chain gold token that will support Ethereum and BNB Chain
  • XAUm launched on September 16, 2024

Matrixdock is expanding its real-world asset (RWA) market with XAUm, an on-chain gold token backed fully by physical gold bars at the London Bullion Market Association (LBMA).

The LBMA physical gold bars backing the on-chain gold token have 99.99% purity, Matrixdock noted in an announcement.

XAUm will be available as an ERC-20 token on Ethereum and as a BEP-20 token on the BNB Chain. Its issuance is pegged 1:1 to a troy oz. of the LBMA gold. Trading support is available for the largest stablecoins in the market today – USDT and USDC.

Investors will not incur any management fee. However, the company will charge a 0.25% flat rate for both minting and redemption orders. Meanwhile, Matrixdock will custody the gold at reputable vaults.

According to the platform, investors will have the option of redeeming XAUm as stablecoins or physical assets. However, users will have to complete KYC procedures to redeem the assets, with physical gold redemption available to customers via Matrixport’s Hong Kong and Singapore services.

RWA market up to $12.3 billion

XAUm’s launch on the RWA platform Matrixdock comes after the successful debut of the Short-term Treasury Bill Token (STBT). STBT offers accredited investors access to tokenized US Treasury bills (T-Bills). The token is pegged 1:1 to the US dollar.

Per RWA.xyz data, the total on-chain value of real-world assets has hit over $12.3 billion. There also are currently more than 100 asset issuers.

The tokenized commodities market, which includes the value of on-chain gold, silver, and oil products, has reached $994 million. The biggest issuers are Paxos, Tether, Comtech Gold, Aurus, and WisdomTree.

In comparison, tokenized treasuries products across the RWA market has surpassed $2.4 billion. BlackRock’s BUIDL, Franklin Templeton’s FOBXX, and Ondo Finance’s USDY are currently the three largest by market value.