Pioneering True Native Multi-Chain Access with RWA
Matrixdock's Gold Token - XAUm is a game changer
Digital assets are rapidly advancing into a multi-chain future where trust and security are paramount. Matrixdock, a leader in Real World Asset (RWA) tokenization, introduces its XAUm gold token that is physically gold-backed with Native Multi-chain Mint and Redeem capabilities. This advancement in RWA space enhances user convenience, Proof of Reserve (PoR) transparency, and asset efficiency. Let’s dive into what makes XAUm gold token unique and why it’s a game-changer.
What is XAUm?
XAUm, an ERC-20 token fully backed by physical gold, offers investors a trusted and transparent digital asset tied to London Bullion Market Association (LBMA) accredited gold. The gold reserves backing XAUm are securely held in high-security, fully insured Brinks vaults in Singapore and Hong Kong, enhancing the credibility and security of the token. By combining gold’s intrinsic value with tokenization technology, XAUm gold token enhances accessibility and revenue generation potential for gold investments and unlocking opportunities for a much broader investor base.
XAUM is not available in certain restricted jurisdictions.
Defining Feature 1: Native Multi-Chain Mint and Redeem
XAUm’s multi-chain support ensures users enjoy seamless service on their preferred blockchain:
Mint on Any Chain: Create XAUm tokens directly on the blockchain of choice without transferring assets between chains.
Redeem on Any Chain: Option to exchange XAUm tokens for physical gold bars, regardless of the originating blockchain.
Interoperability Cross Chains: For the best multi-chain risk management practice, we leverage Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to ensure secure and smooth backend processes without exposing users to cross-chain complexities.
For instance, if you own a gold bullion and wish to bring it onto the blockchain to make it compatible with Web3, to gain access to a wider range of digital asset services across Decentralized Finance (DeFi) or Centralized Finance (CeFi) platforms. XAUm offers the perfect solution, with its native multi-chain capability, XAUm allows you to mint (create) or redeem (exchange tokens back to physical gold) directly on your preferred blockchain. Currently supporting Ethereum and Binance Smart Chain, Matrixdock plans to expand support to additional chains in the near future.
In a multi-chain environment, ensuring transparency in gold reserve verification is a key aspect of XAUm’s design. To address concerns about the lack of transparency in off-chain reserve management commonly seen in other multi-chain products, XAUm implements on-chain Proof of Reserve (PoR). This feature allows users to verify that each XAUm token is fully backed by physical gold. This approach instills confidence and trust in the investment process.
Defining Feature 2: Dynamic On-Chain “Minting Budget”
XAUm’s Mint Budget system ensures that every token is fully backed by gold while enabling flexible minting and redeeming across multiple chains.
Here’s how it works, we split the concept into two parts: Global Mint Budget and Local Mint Budget.
Global Mint Budget: The Total Reserve-Backed Capacity
Based on verified gold reserves, the Global Mint Budget represents the total amount of XAUM tokens that can be minted across all supported blockchains.
A Proof of Reserves (PoR) Oracle deployed on Ethereum tracks the total weight of gold bars under custody. The Oracle:
Validates the gold reserves held in secure vaults.
Publishes the verified reserve amount to an on-chain contract.
The Global Mint Budget is updated whenever new gold bullion are added to the reserves, increasing the budget.
Local Mint Budget: Chain-Specific Allocation
The Local Mint Budget is the portion of the Global Mint Budget allocated to a specific blockchain, such as Ethereum or Binance Smart Chain.
Each chain operates within its own Local Mint Budget, ensuring that the amount of XAUM minted on any chain cannot exceed its allocated capacity.
Dynamic Cross-Chain Budget Allocation
To support multi-chain minting and redeeming, Matrixdock uses secure cross-chain protocols to transfer portions of the Local Mint Budget between chains.
If one chain has a high demand for minting while another has an excess budget (due to redemptions), the surplus can be reallocated by smart contract. This dynamic system ensures real-time utilization of the Global Mint Budget to enhance operational efficiency.
Allocation of Mint Budget between different chains based on live redemption and minting requests: For instance, a large amount of Redeem XAUM has just occurred on the Binance Smart Chain, increasing the Local Mint Budget. At the same time, there is a demand for Mint on Ethereum. The smart contract will transfer the increased portion of the Mint Budget from the Binance Smart Chain to Ethereum to facilitate the completion of the Mint. In short, the Mint Budget will be reallocated from a chain where there is a surplus to a chain where there is a demand for XAUM minting.
The Bigger Picture: Why This Matters
Gold has long been a trusted store of value, and XAUm brings it on-chain. By integrating Native Mint and Redeem capabilities, Matrixdock is setting a new standard for security, transparency, and investability. Every token is fully backed by a physical gold reserve, and the process is automated, user-friendly, and trustworthy.
Gone are the days of clunky cross-chain systems and reliance on third-party intermediaries. With XAUm, investors gain the best of both worlds: the enduring stability of gold and the transformative potential of blockchain technology. This approach not only enhances today’s investments but also builds a robust foundation for the financial future.
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