Gold, Tokenized: Who Really Lets You Walk Out With a Bar?
𝗜𝗳 𝘆𝗼𝘂𝗿 𝗲𝗻𝗱𝗴𝗮𝗺𝗲 𝗶𝘀 𝗮 𝗯𝗮𝗿 𝗶𝗻 𝗵𝗮𝗻𝗱, 𝗻𝗼𝘁 𝗷𝘂𝘀𝘁 𝗮 𝘁𝗶𝗰𝗸𝗲𝗿 𝗼𝗻 𝗮 𝘀𝗰𝗿𝗲𝗲𝗻, 𝘁𝗵𝗲 𝗹𝗶𝘀𝘁 𝗼𝗳 𝗴𝗼𝗹𝗱-𝗯𝗮𝗰𝗸𝗲𝗱 𝘁𝗼𝗸𝗲𝗻𝘀 𝘁𝗵𝗮𝘁 𝗰𝗮𝗻 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗯𝗲 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝗲𝗱 𝗶𝗻 𝗦𝘄𝗶𝘁𝘇𝗲𝗿𝗹𝗮𝗻𝗱 𝗶𝘀 𝘀𝗵𝗼𝗿𝘁𝗲𝗿—𝗮𝗻𝗱 𝘀𝘁𝗿𝗶𝗰𝘁𝗲𝗿—𝘁𝗵𝗮𝗻 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝘀𝘂𝗴𝗴𝗲𝘀𝘁𝘀. We vetted redemption venues, minimums, fees, and chains across five programs with Swiss links (DGLD, PAXG, XAUt, DaVinci, SGT). The punchline: redemption works, but it’s gated by full-bar thresholds, eligibility, and logistics fees. And if you’re comparing to exchange-listed gold like GLD or IAU, retail redemption there is effectively off-limits.
London Good Delivery bars vary by weight (≈370–430 oz). Issuers ask holders to hold ≈430 tokens to ensure a full-bar match plus fees for direct bar redemption; smaller sizes are usually routed through dealer partners who break into kilobars/coins and add fabrication and handling spreads.
What actually happens when you redeem
𝗗𝗶𝗿𝗲𝗰𝘁 𝗯𝗮𝗿𝘀 𝘃𝘀. 𝗱𝗲𝗮𝗹𝗲𝗿 𝗰𝗵𝗮𝗻𝗻𝗲𝗹𝘀: PAXG whole-bar redemptions are delivered to UK vaults; for Swiss delivery on smaller tickets you’ll likely go through a dealer who charges spreads and shipping. XAUt explicitly supports bar delivery to Swiss addresses. DGLD now offers physical redemption via Gold Avenue or direct contact in Switzerland/Europe.
𝗙𝗲𝗲𝘀 𝘀𝘁𝗮𝗰𝗸 𝘂𝗽: Issuer program fees are only half the picture; 𝗳𝗮𝗯𝗿𝗶𝗰𝗮𝘁𝗶𝗼𝗻, 𝗮𝘀𝘀𝗮𝘆 (𝗶𝗳 𝗻𝗲𝗲𝗱𝗲𝗱), 𝘀𝗵𝗶𝗽𝗽𝗶𝗻𝗴, 𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗮𝗻𝗱 𝗹𝗼𝗰𝗮𝗹 𝘁𝗮𝘅𝗲𝘀 come from the dealer/logistics side. For example, XAUt lists a 𝟬.𝟮𝟱% redemption fee before delivery costs; DaVinci publishes instrument-specific premiums (e.g., DVGO vs. DVGK) covering service and logistics.
𝗘𝗹𝗶𝗴𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗺𝗮𝘁𝘁𝗲𝗿𝘀: SGT is 𝗽𝗿𝗼-𝗼𝗻𝗹𝘆; XAUt imposes jurisdictional eligibility; DGLD and PAXG require standard KYC/AML and compliance checks to move into physical. 𝗔𝗹𝘄𝗮𝘆𝘀 𝗰𝗼𝗻𝗳𝗶𝗿𝗺 𝗿𝗲𝘀𝗶𝗱𝗲𝗻𝗰𝘆 𝗮𝗻𝗱 𝗮𝗰𝗰𝗼𝘂𝗻𝘁 𝘀𝘁𝗮𝘁𝘂𝘀 𝗯𝗲𝗳𝗼𝗿𝗲 𝘄𝗶𝗿𝗶𝗻𝗴
Where Stellar fits
Stellar’s long-standing strengths—𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗲𝗱 𝗮𝘀𝘀𝗲𝘁 𝗶𝘀𝘀𝘂𝗮𝗻𝗰𝗲, 𝗳𝗮𝘀𝘁/𝗹𝗼𝘄-𝗰𝗼𝘀𝘁 𝘁𝗿𝗮𝗻𝘀𝗳𝗲𝗿𝘀, 𝗮𝗻𝗱 𝗙𝗶𝗮𝘁↔𝗖𝗿𝘆𝗽𝘁𝗼 𝗿𝗮𝗺𝗽𝘀—map naturally to tokenized bullion: an issuer (anchor) can gate transfers via allowlists/KYC, publish proof-of-reserve attestations, and automate redemption workflows (e.g., scheduled deliveries, whitelist-only swaps) while distributing to retail at low network cost. Add 𝗠𝗼𝗻𝗲𝘆𝗚𝗿𝗮𝗺 𝗥𝗮𝗺𝗽𝘀 and you get global cash-on/off for USDC on Stellar (cash out in 𝟭𝟳𝟬+ 𝗰𝗼𝘂𝗻𝘁𝗿𝗶𝗲𝘀, cash-in in 30+), which could pair with a CH-vaulted gold token for practical liquidity without sacrificing custody discipline. As ever, the trust anchor is 𝗼𝗳𝗳-𝗰𝗵𝗮𝗶𝗻—the vault/refiner and its disclosures—not the chain.
If you are interested in issuing a token - please contact us at sales@bpventures.us
About those ETFs (GLD, IAU): why retail redemption is “no”
Exchange-listed gold vehicles are designed for 𝗺𝗮𝗿𝗸𝗲𝘁 𝗹𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆, not walk-in redemptions. 𝗢𝗻𝗹𝘆 𝗔𝘂𝘁𝗵𝗼𝗿𝗶𝘇𝗲𝗱 𝗣𝗮𝗿𝘁𝗶𝗰𝗶𝗽𝗮𝗻𝘁𝘀—large broker-dealers that can move bullion—create and redeem ETF “baskets” (e.g., 𝗚𝗟𝗗: 𝟭𝟬𝟬,𝟬𝟬𝟬 𝘀𝗵𝗮𝗿𝗲𝘀, historically ≈10,000 oz; 𝗜𝗔𝗨: 𝟱𝟬,𝟬𝟬𝟬 𝘀𝗵𝗮𝗿𝗲𝘀 baskets). Retail holders buy/sell on exchange; they 𝗰𝗮𝗻𝗻𝗼𝘁 turn shares into bars at the trust. If your goal is physical allocation you can touch, token programs (subject to the caveats above) or traditional vaulting are more direct routes than ETFs.
Practical playbook (before you click “redeem”)
𝗤𝘂𝗼𝘁𝗲 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝘀𝘁𝗮𝗰𝗸. Ask the issuer or dealer for all-in costs: redemption/program fees plus fabrication, shipping, insurance, and any taxes. XAUt publishes 0.25% program fee; the rest is logistics.
𝗦𝗶𝘇𝗲 𝗳𝗼𝗿 𝗮 𝗯𝗮𝗿 𝗼𝗿 𝗽𝗶𝗰𝗸 𝘆𝗼𝘂𝗿 𝗶𝗻𝘀𝘁𝗿𝘂𝗺𝗲𝗻𝘁. If you want the cheapest per-ounce redemption, aim for full-bar thresholds (≈430 oz on London bars) or choose kilo/coin programs like DaVinci to match your ticket.
𝗠𝗶𝗻𝗱 𝗴𝗲𝗼𝗴𝗿𝗮𝗽𝗵𝘆. PAXG whole-bar redemptions are to UK vaults; Swiss delivery on small lots usually flows via dealers. XAUt supports bar delivery to Swiss addresses. DGLD now supports CH/EU physical redemption via Gold Avenue or direct.
𝗜𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻𝗮𝗹 𝗽𝗮𝘁𝗵𝘄𝗮𝘆𝘀 𝗲𝘅𝗶𝘀𝘁. If you manage LBMA bars already, DGLD and SGT offer institution-grade mint/redeem against inventory under Swiss frameworks.