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xGold tokens

xGold tokens represent ownership of unique London Good Delivery gold bars or troy ounces. The underlying collateral is held by SwarmX on a segregated basis within LBMA-approved security carrier vaults. All Terms of Service apply.

Issuance process

  1. Offer: Any wallet address can buy gold NFTs with USDC, which are initially restricted, by placing an offer in the dOTC.
  2. Onboard: All wallets wishing to issue newly minted xGold tokens must undergo KYC and AML checks. Restrictions are then lifted for wallets who successfully pass these checks. If not passed, the token remains held by the user but inactive. xGold is available to residents in certain countries. Please find a full list here.
  3. Convert: USDC is converted to USD to purchase an equivalent amount of London Good Delivery gold to maintain a one-to-one ratio of xGold. The underlying physical gold is sourced through institutional grade partners, StoneX and Philioro
  4. Connect: A unique serial or purchase order number from the physical gold is attached to the NFT.
  5. Swap: Trade your gold NFT for any asset on the Swarm secondary liquidity platform.

Ownership and allocation

xGold tokens are akin to a warehouse receipt representing the beneficial ownership of allocated gold stored in a LBMA-approved warehouse. Token holders hold all of the economic value of the gold represented by your tokens, and all of the risk and reward related to ownership of that gold.

Token holders can view the serial number, purity, and gross weight of the London Good Delivery gold bars represented by the xGold tokens held in a public blockchain address or on gold.swarm.com.

Insolvency protection

SwarmX is a dedicated entity for holding RWA assets. These assets are secured from the outset and not placed on the company’s balance sheet and insolvency protected.

For background: The agreement is between SwarmX and the token holders according to the terms and conditions, so that it is a so-called genuine contract for the benefit of third parties under German law. As a consequence, the claim of redemption is always sitting with the token holder. SwarmX does not have an own claim of redemption of the underlying assets. Therefore, it is not part of the estate of SwarmX and therefore not part of SwarmX's assets in case of insolvency.

Composability

xGold tokens are being adopted by various partners and protocols, providing holders with collateralization options such as lending, borrowing and further yield generation.

As of January 2025, xGold is supported by the following:

MetaStreet:

Deposit xGold Ounces (Base network) into a xGold/USDC pool and borrow USDC at up to 70% LTV.

MetaStreet - Yield from anything

metastreetxyz

Open

Borrow USDC against xGold Ounces

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Redemption

You will be given the option to redeem the xGold tokens you have deposited in your account into allocated gold by providing written notice. In order to redeem your xGold for the physical underlying gold, you must be onboarded with SwarmX. Any outstanding fees will be deducted and you may be subject to additional due diligence.

Token standard

xGold tokens are ERC1155 non-fungible tokens on Ethereum Virtual Machine (“EVM”) compatible public blockchains, starting with Polygon and Ethereum.

Transferability

Once you have xGold tokens, you can transfer them, trade them, keep them, use them to pay persons that will accept xGold, or convert them for US dollars.

DeFi integration

Smart contracts will be made available for unique assets to be composed into dynamic collections of similar assets, which are then fractionalized for trading, lending and borrowing.

Pricing

Each xGold token is equal to the fine weight described in information embedded within the token (“Know Your Asset” or “KYA”) and denominated in London Good Delivery gold value.

Quoted price quotes for the price of the xGold tokens are based on the value for one troy ounce of London Good Delivery gold (the “Price Quote”). The Price Quote is only valid for five (5) seconds. Prior to a decision to convert, investors will be shown an estimate of the conversion price for xGold tokens.

Fees

All fees will be accounted for in the smart contract.

  • Custody: Brinks will charge storage fees of 0.02% per month of the xGold value stored to all token holders. Storage fees are passed on to all xGold token holders on a pro rata basis. A storage fee credit of 0.50% of the conversion will be taken upon the conversion into xGold tokens
  • Issuance: 1% will be charged upon the conversion of xGold tokens and included within the quoted price of the offer
  • Transfer: 0.2% of the xGold transferred in each transaction of xGold over the blockchain