The article compares redeemable gold-backed tokens like DGLD, PAXG, XAUt, DaVinci, and SGT, focusing on Swiss redemption options, minimums, fees, and logistics. It highlights practical challenges for physical delivery and contrasts with non-redeemable gold ETFs. A dedicated section explains Stellar's advantages for issuing such tokenized assets.
This analysis vets five gold-backed tokens with Swiss connections—DGLD, PAXG, XAUt, DaVinci Swiss Gold, and SEBA Gold Token (SGT)—detailing redemption venues, minimum bar sizes (often ~430 oz for London Good Delivery), supported chains like Ethereum and Tron, minting restrictions, and stacked fees including redemption, shipping, and insurance. It outlines real-world redemption processes, eligibility hurdles (e.g., institutional-only for SGT, U.S. restrictions for XAUt), and why retail redemption from ETFs like GLD or IAU is impractical. The piece positions Stellar blockchain as ideal for tokenized bullion due to regulated issuance, low-cost transfers, KYC gating, proof-of-reserves, and MoneyGram fiat ramps for global liquidity. Practical advice includes quoting full costs, sizing for bars/coins, considering geography, and exploring institutional paths. It promotes contacting the author for token issuance on Stellar.
