XAUm Redefines Gold, Sparking an Asset Renaissance
High-Quality Collateral in DeFi Lending - Unlock Unprecedented Leverage Potential
Gold has long been regarded as the quintessential store-of-value asset due to its unique attributes: global recognition, high liquidity, and intrinsic stability. However, traditional gold investment involves ongoing costs, and the credible gold lending market has diminished long ago. As a result, you often hear that gold is a non-yielding financial product.
Matrixdock modernizes gold investment by bringing it on-chain. Our gold token, XAUm, is backed by the London Bullion Market Association (LBMA) - accredited gold bars with a minimum fineness of 99.99%, it is a true testament to the highest quality standards. As XAUm investors, you have the option to gain access to a broader range of financial services across decentralized and centralized platforms. Our partnership with Brink's, a global leader in valuables management, ensures secure vaulting of gold in Singapore and Hong Kong, further strengthening XAUm's trust and reliability.
Unlock Gold Lending Liquidity with Tokenization
XAUm rejuvenates this centuries-old investment asset, transforming it into a modern multifunctional capital tool by unlocking gold's lending liquidity on-chain. This innovation is fostering a new paradigm for gold's role in crypto finance and traditional capital markets.
Matrixdock’s XAUm is at full speed in integrating with DeFi borrowing and lending protocols, so XAUm holders can collateralize their tokens to generate yield without selling their gold holdings. The Loan-to-Value (LTV) ratio on XAUm is as high as 93%, which is much higher than Bitcoin’s on leading DeFi platforms like Curve Finance, highlights the DeFi ecosystem’s confidence in XAUm as a blue-chip collateral asset.
The LTV ratio is a measure of the amount of a loan compared to the value of the collateral, and XAUm's higher LTV ratio means it can be used more efficiently as collateral. This level of capital efficiency exemplifies Matrixdock's dedication to enhancing risk-adjusted returns in DeFi through tokenized gold as an RWA.
We will soon announce the details of Curve Finance integration. Curve is a leading DeFi stable coin lending protocol. Stay tuned for more.
XAUm: Modernizing Gold in Three Dimensions
Each of these dimensions highlights how XAUm is transforming the gold investment landscape:
1. Enhancing Asset Efficiency
Conventionally, gold has been confined to wealth preservation, with limited income-generating potential. XAUm retains gold’s core store-of-value function while integrating DeFi’s benefits, including Proof- of- Reserve transparency, programmability, and 24/7 accessibility. Available as both ERC-20 tokens and NFTs, XAUm transforms static gold assets into dynamic, high-efficiency capital instruments, optimizing borrowing and liquidity.
2. Paradigm for Financial Inclusion
XAUm lowering barriers to gold Investments broadens access to gold-backed financial services, making them available to more market participants, not just institutions and high-net-worth individuals. Tokenization reduces operational costs and enhances transparency in investing in gold and gold lending. It enables underserved individuals and small-to-medium investors to access a new global financial network fairly and affordably, advancing the goal of "gold ownership and utility for all."
3. Enhance Risk-Adjusted Returns
Matrixdock designed XAUm with a strong focus on risk management. Unlike Bitcoin, whose inherent price volatility limits its effectiveness as collateral, XAUm offers higher price stability, reflecting gold's proven reliability as a store of value. Even with the elevated LTV ratio, using gold as the underlying collateral asset in DeFi, it helps to reduce market volatility in the event of a sharp market sell off and force liquidation of crypto collateral as we saw in the last crypto market capitulation. We believe that XAUm has the potential to become a benchmark for DeFi collateral, laying a solid foundation for the long-term, healthy growth of the DeFi ecosystem.
A New Financial Era
XAUm’s investment versatility, price stability, and elevated LTV ratios redefine collateral lending efficiency, positioning it as a cornerstone asset in the DeFi landscape. This milestone represents a pivotal step in merging traditional financial instruments with decentralized ecosystems, setting a new standard for asset tokenization.
By bridging real-world gold with blockchain technology, XAUm serves as both a benchmark for DeFi collateralization and a catalyst for the digitization of blue-chip tangible assets.