Investing in gold is about to get easier and more efficient after digital asset investment services firm VNX launched a platform for tokenised precious metals.
The first tokenised metal on the platform, which was developed in Luxembourg, is VNX Gold, a token stored on Ethereum blockchain technology which represents an ownership stake in a physical gold bullion certified by the London Bullion Market Association.
According to VNX, each gold bar is stamped with a unique serial number linking it to the VNX Gold tokens, which are available on the platform under the ticker VNXAU.
Investment in gold is considered a hedge against inflation, with gold prices experiencing a resurgence in 2020, the first year of the pandemic. The VNX platform leverages that interest and eases access to gold trading through distributed ledger technology.
Founder and CEO of VNX Alexander Tkachenko said: “The crypto market is inherently volatile and offers investors little, if anything, in terms of hedging. Our secure platform and tokens backed by gold offer clients a cutting-edge way to invest in precious metals, without the headache of traditional ownership associated with storage, transportation, etc. We are thrilled to launch our tokenized gold which can be used as a hedge against market uncertainty and stored in a digital wallet.”
“Once again replacing yet another complex, inefficient, value chain with a safe and traceable digital alternative.”
Michael Jackson, VNX advisor
The platform allows customers to purchase VNX Gold tokens in euros, Ether or Bitcoin. They can transfer their tokens to any Ethereum wallet and the physical gold is stored in a fully-insured VNX vault in Liechtenstein with no storage fees imposed. According to VNX, holders can also collect their physical gold or receive a minimum of one kilo of gold via global delivery.
Tkachenko told Silicon Luxembourg that in the near-future, VNX plans to tokenise silver, which is “considered as a great asset during the time of the market volatility.” Meanwhile, the firm is monitoring other precious metals, like platinum and palladium, “which could have a great potential and interest from the investors.”
VNX was launched in Liechtenstein in 2022 and hosts its centre of technology in Luxembourg. According to its press release, the platform is AML and KYC compliant and adheres to the Liechtenstein Tokens and TT Services Providers Law. It is regulated by the Financial Market Authority.
Tkachenko is a serial entrepreneur and angel investor who also founded 2BE.LU early-stage venture capital fund with a portfolio of 17 companies focused on the sharing economy, artificial intelligence and blockchain technologies.
According to VNX advisor Michael Jackson (former Skype COO and former Mangrove Capital partner), VNX Gold offers “a great and twenty first century alternative for the traditional investment into precious metals, through a commodity broker or by buying gold in the souk. Once again replacing yet another complex, inefficient, value chain with a safe and traceable digital alternative.”