The gold bars will be safe in a vault in Liechtenstein. Buyers will be able to purchase a minimum of one gram, with each gram representing a VNX gold token. (Photo: Shutterstock)

The gold bars will be safe in a vault in Liechtenstein. Buyers will be able to purchase a minimum of one gram, with each gram representing a VNX gold token. (Photo: Shutterstock)

Luxembourg fintech VNX has announced the launch of a solution for the tokenisation of gold--and other commodities in a second phase--from Liechtenstein, showing how the blockchain can solve many of the problems of the gold market.

Gold is often considered a safe bet. Buying it, however, is another ballgame altogether for the average person: you have to be able to pay the costs associated with its acquisition, trust an intermediary, have a storage solution...

These are all problems that Alexander Tkachenko’s Luxembourg-based fintech VNX solves in one go. VNX Gold, its new Liechtenstein-licensed platform, is the first to offer gold tokens and is preparing the launch of silver, platinum and palladium tokens. How does it work? With euros, bitcoins or ethers and after a strict onboarding process of the customer, he or she will be able to buy gold tokens. Each token represents one gram of gold.

The physical counterparty must exist and be secure: the corresponding bullion bars, certified by the London Bullion Market Association (LBMA), will be in a vault in Liechtenstein; each of their serial numbers will be linked to the token of the platform, based on ethereum. A customer will even be able to get their gold back starting from a kilogram, the price of which has risen from €9,500 in 2000 to €54,000 in 2020, or transfer their tokens to the digital wallet they usually use.

VNX does not charge storage fees. Transaction fees are 0.15% and are charged for the transfer of VNX gold tokens to another wallet on the ethereum blockchain. The buy (issue) and sell (termination) fees are 2.5%.

“The cryptocurrency market is inherently volatile and offers little to nothing to investors in terms of hedging,” comments Tkachenko. “Our secure platform and gold-backed tokens offer customers a cutting-edge way to invest in precious metals, without the headache of traditional ownership associated with storage, transportation, etc. We are excited to launch our tokenised gold, which can be used as a hedge against market uncertainty and stored in a digital wallet.”

“Many crypto-assets are perfect speculative instruments as their prices rise dramatically or fall sharply. But sometimes traders and investors need a safe haven. That’s what VNX Gold is--an accessible asset fully backed by real, deliverable gold. It’s a great 21st century alternative to traditional precious metals investing through a commodity broker or buying gold at the souk. Replacing yet another complex and inefficient value chain with a secure and traceable digital alternative,” says Michael Jackson, advisor to VNX (former partner at Mangrove Capital and former COO of Skype).

This article was originally published in French by  and has been translated and edited by Delano.