Physical gold bars safely stored in Hong Kong and Singapore vaults have now established a presence on Circle’s Arc blockchain, marking the arrival of the network’s inaugural tokenized gold asset.
Matrixdock, the issuer of the token, notes that eligible sellers can receive their funds on the same day, although the official rulebook specifies a timeline of three working days.
The First Tokenized Gold Asset Still Waits Three Days
During April 2025, a client entered a Singapore vault and departed with a kilogram of gold after Matrixdock successfully converted a token back into physical metal over a three-day period.
Every XAUm token represents one ounce of gold stored with Brink’s or Malca-Amit, with direct traceability to a numbered bar. Matrixdock releases reserve reports and covers the expenses of the auditor who verifies them.
Traditional gold transactions move at a deliberate pace globally. In London, which serves as the largest market, trades settle two days afterward, while Matrixdock’s paperwork continues to advise sellers to anticipate a three-working-day wait for payouts.
The same-day payout option applies exclusively to qualified transactions, and Matrixdock requires verification of the deal beforehand. Furthermore, the cash-out schedule operates according to New York time, whereas the storage facilities are located twelve hours ahead.
“Gold has been an institutional reserve asset for centuries, but holding it and using it have always been two different things,” said Eva Meng, head of Matrixdock, in a statement sent to BeInCrypto.
How XAUm Compares With Bigger Gold Tokens
While XAUm aims to provide quicker liquidity than competing products, its physical redemption thresholds are significantly lower. Paxos demands 430 PAXG in exchange for a London Good Delivery bar, and the buyer must organize the shipment themselves. In contrast, Matrixdock requires 32.148 tokens to redeem a one-kilogram bar, which can be picked up in Singapore or Hong Kong.
Additionally, XAUm supports a broader array of networks than its competitors, operating across eight chains including Arc. By comparison, Tether Gold functions on Ethereum and the BNB Smart Chain, whereas PAX Gold incorporated Solana in June while otherwise remaining on Ethereum.
This accessible barrier to physical metal provides a distinct advantage for individuals seeking actual gold ownership, given that approximately $139,000 acquires a redeemable kilogram via XAUm, whereas PAXG necessitates roughly $1.8 million prior to Paxos dispatching a bar.
Nevertheless, spreading eight networks across a $71 million token results in thin liquidity being stretched even further. XAUt and PAXG maintain a presence on only two networks precisely because market depth outweighs expansive reach when traders need to liquidate large positions swiftly.
A Chain Built for Banks That Opened With Joke Tokens
Meng’s comments coincide with efforts by Arc to establish its primary utility. Circle officially introduced the network on September 16, backed by infrastructure support from Visa, BlackRock, and Standard Chartered.
However, initial trading activity took a different path, with platforms dedicated to minting joke tokens capturing 82% of the $410.8 million volume recorded on Arc’s launch day, according to BeInCrypto.
In terms of valuation, XAUm remains the smallest among major gold tokens. As of May 1, its market capitalization stood at $70 million, trailing far behind Tether Gold at $2.52 billion and PAX Gold at $2.32 billion.
XAUm currently trades at approximately $4,318, bringing its total valuation near $71 million. Matrixdock indicates that lending features will be integrated later, though gold on Arc can currently be sold rather than used as collateral for loans.