Matrixdock is expanding the utility of its XAUm tokenized-gold product across Stellar, BNB Chain and Circle’s Arc network, building on a physical redemption process that has already linked an on-chain token burn to the delivery of a 1-kilogram gold bar from a Singapore vault. The rollout gives holders additional ways to trade, post, borrow against, or redeem gold exposure while the underlying bullion remains in custody.
Each XAUm token represents one troy ounce of 99.99% pure physical gold, according to Matrixdock’s product documentation. The bullion is held at Le Freeport, a high-security storage facility near Singapore Changi Airport, and is sourced from refiners meeting the London Bullion Market Association’s Good Delivery standards.
The structure separates ownership transfers from physical movement. XAUm can change hands between blockchain wallets while the corresponding bars remain in the vault, avoiding the logistics and cost of moving bullion for every transaction. That design gives tokenized gold a role in decentralized-finance arrangements where physical metal itself would be difficult to settle quickly.
A kilogram bar tied to an on-chain burn
Matrixdock said it completed its first physical XAUm redemption on April 22, 2025, when it delivered a 1-kilogram gold bar at Le Freeport after 32.148 XAUm were burned on Ethereum. One kilogram equals roughly 32.15 troy ounces, making the token amount broadly consistent with the bar’s weight after the redemption calculation.
The relevant transfers and burn were recorded on Etherscan, creating a public blockchain trail for the token side of the transaction. The physical delivery itself occurred within the vault environment, where access is controlled through identity checks and strict handling rules.
Le Freeport limits photography and bullion handling to designated display areas under staff supervision, according to the description of the facility arrangement provided by Matrixdock. Security systems can trigger alarms if movements extend beyond permitted areas. Those restrictions illustrate the operational divide between the physical asset and its digital representation: gold custody remains tightly controlled, while XAUm can be transferred at blockchain speed.
The redemption serves as a practical test of a central requirement for asset-backed tokens. A token’s usefulness in lending or trading depends on the ability to retire it and claim the underlying asset under stated conditions. In XAUm’s case, the burn removed tokens from circulation before the physical bar was released.
New chains add collateral and trading routes
Matrixdock expanded XAUm to Stellar through a native issuance in June 2026. Native issuance generally means the asset is created directly on the network rather than represented through a bridge from another chain, reducing reliance on a separate wrapped-token arrangement.
Also in June, Venus Protocol accepted XAUm as its first real-world-asset collateral in the Fixed-Term Vault on BNB Chain, according to Matrixdock. The integration creates a route for eligible users to pledge tokenized gold in a borrowing structure rather than selling the asset to obtain liquidity.
That distinction can be useful for holders seeking temporary access to stablecoins or other on-chain assets while retaining exposure to gold prices. It also introduces the usual lending-market risks, including collateral requirements, liquidation rules and smart-contract exposure, which depend on the protocol’s terms.
In September, Matrixdock deployed XAUm on Arc, the Layer-1 blockchain developed by Circle. It also introduced an XAUm/USDC trading pair on Uniswap, connecting the gold-backed token to a market quoted against the dollar-pegged stablecoin.
The Arc and Uniswap launch gives XAUm a more direct route into USDC-denominated on-chain trading. A liquid market against USDC could make it easier for users to move between tokenized gold and digital dollars without relying on conventional bullion dealers or bank settlement windows. Actual execution quality will depend on available liquidity, trading activity and the pricing mechanisms used in the pool.
Custody and reserve verification remain central
Matrixdock says XAUm’s backing is supported by independent audits and on-chain proof-of-reserves records designed to show that token supply corresponds with vaulted gold. Such verification is central to products that represent off-chain assets, since blockchain records alone can establish token issuance and transfers but cannot independently prove the condition or existence of bullion held at a private facility.
The company’s published redemption arrangement also includes a USDC payout option. Eligible holders that provide the required transaction evidence and satisfy the stated conditions can receive USDC proceeds on the same day, according to Matrixdock. That option gives users an alternative to arranging physical collection of bars, which may be impractical for smaller positions or participants outside Singapore.
Physical redemption remains the stronger test of an asset-backed token’s structure, while USDC settlement offers a more accessible off-ramp for users focused on value rather than delivery. Together, the two routes position XAUm as a gold claim that can function in both vault-based and blockchain-native settlement environments.
Matrixdock builds a metals and treasury lineup
XAUm is part of Matrixdock’s real-world-asset product range, which also includes STBT, a tokenized short-term U.S. Treasury product, and XAGm, a tokenized silver product. Matrixdock describes the lineup as a reserve-layer model intended to combine conventional asset custody with blockchain-based transferability and settlement.
The approach places the firm in a segment of on-chain finance where the difficult work is less about creating a token than maintaining the legal, operational and custody links behind it. Gold has an established global pricing market and physical storage infrastructure, but bringing it on-chain requires credible reserve management, clear redemption terms and usable liquidity across networks.
XAUm’s recent network integrations extend the token beyond a single-chain gold representation into a collateral and trading asset operating across several blockchain environments. Its long-term utility will rest on whether the token’s on-chain markets, proof-of-reserves process and redemption mechanism remain aligned with the bullion stored at Le Freeport.
Explore how real gold compares with crypto assets in your portfolio in our guide: how to invest in gold.
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