xbullion tokens are backed by physical gold bullion, creating a new mechanism for investors to buy fractional gold.
Fractional ownership of gold
The introductions of gold Exchange Traded Funds (ETFs) in the early 2000s made it easier for smaller investors to buy derivatives of gold. Suddenly, gold could be traded as easily as buying shares on a stock exchange. Now, xbullion takes this concept a step further by allowing fractional ownership of physical gold bullion that’s securely locked in a vault. Investors can buy 1 gram of gold, fractionalised to eight decimal places. All gold is audited by accountancy firm BDO.
xbullion is able to offer access to physical gold at or near the global spot price. Large ETFs generally invest in unallocated gold and trade at premiums of up to 2% over the spot market. xbullion allows traditional ETF investors to hold gold bullion, at a discount to the premium paid. Wallets holding over 29kg of gold attract substantially reduced management fees. xbullion is an attractive option for any gold ETF, superannuation fund or sophisticated investor holding large quantities of gold.
xbullion will be tradable across multiple exchanges and can be converted to fiat currency.
Physical gold can also be delivered to major cities across the globe.
Implementing blockchain around an ETF allows registry details to be held by a network of computers globally, through the blockchain.
This allows clients absolute security around their holdings, and absolute freedom around redemption, privacy, and transferability.