- 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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