Gold Tokenization

Turning Physical Gold into a Globally Tradeable

How Clarisco engineered a gold tokenization platform for a precious metals company covering vault-backed token issuance, on-chain proof-of-reserve, and a 24/7 global trading terminal. Book a live walkthrough to explore the platform.

Gold Tokenization

What the Client Came to Clarisco to Solve

The client is a precious metals trading and vaulting company with 20 years of operational history and vault relationships in Dubai, Singapore, and Zurich. The client needed to enter the digital gold market by issuing gold-backed digital tokens with a verifiable 1:1 link to LBMA-certified physical gold held in their vault network.

Gold Tokenization

How Clarisco Designed and Delivered the Platform

We structured the build around five sequential phases. The vault API integration and bar-level inventory mapping, XGLD ERC-20 token contract development with reserve-gated minting, and Chainlink proof-of-reserve oracle deployment and Ethereum mainnet anchoring. The trading terminal development covers both retail and professional interfaces, KYC/AML integration, security audit, and phased mainnet deployment.

The Features We Offer with our Gold Tokenization

XGLD Token

The XGLD token is the platform's foundational financial instrument. Built on the ERC-20 standard and deployed on Polygon for transaction cost efficiency, each XGLD token represents exactly 1 gram of 99.9% fine gold.

On-Chain Compliance Rules

Live On-Chain Proof-of-Reserve

Proof-of-reserve is a verifiable, continuously updated on-chain data feed powered by Chainlink nodes. Every four hours, Chainlink's decentralized oracle network queries the client's data and pushes an updated reserve.

Gold Investment from 1 Gram

By denominating the XGLD token in grams, the platform opens physical gold ownership to a global population of investors who have historically been priced out. A first-time investor can buy 1 gram of gold with a physical backing.

Automated Trading

24/7 Automated Trading Terminal

The platform's smart contract-powered order book operates 24 hours a day, 7 days a week, with no human intervention required. The trading terminal serves two distinct user profiles from a single backend.

Physical Redemption

The physical redemption module is what distinguishes XGLD from a purely speculative digital instrument. Token holders can initiate a redemption request through the platform at any time, specifying their preferred delivery format.

How the Gold Tokenization Process Works

Step 1 - Physical Gold Enters the Vault

The process begins when physical gold is purchased by the client from LBMA-certified refiners. The vault operator records each bar's serial number, weight, purity certification, and storage location using the vault management system.

Step 2 - Investors Buy, Hold, and Trade XGLD

Once tokens are in the issuance pool, verified investors can purchase XGLD through the retail interface or professional terminal. Holdings appear immediately in the investor's portfolio dashboard by displaying real-time gram value.

Step 3 - Income Events and Corporate Actions

While physical gold does not generate yield in the traditional sense, the platform supports structured gold lending programmes where consented token holders can participate in gold lending pools.

Step 4 - Redemption and Physical Delivery

The system validates their KYC status and holding balance, confirms the redemption quantity against available vault inventory, and generates a redemption instruction to the relevant vault facility.

Three Lessons This Project Taught

The Vault Integration Is the Hard Part

Building the vault API layer first, and making it the authoritative source of truth for all token minting events, meant the proof-of-reserve system was accurate from mainnet operation.

Proof-of-Reserve Builds Trust

A live, continuously updated, on-chain proof-of-reserve system is technically more complex to build than a quarterly audit PDF. It is also infinitely more valuable to investors.

Same Platform For Retail and Institutional Investors

The temptation in building a gold tokenization platform is to target one user profile, either the retail investor with a simple, consumer-friendly app or the institutional trader.

Structured Credit

Ready to Bring Your Gold or Commodities On-Chain?

From vault integration and proof-of-reserve to ERC-20 token issuance, 24/7 trading infrastructure, and regulatory compliance, Clarisco delivers the complete gold tokenization platform, built for real institutional and retail deployment.

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Founder
Priyadharshini Suriyanarayanan

Founder, Clarisco Solutions Private Limited

Tech enthusiast with 12+ years of experience delivering 500+ web, mobile, blockchain, and AI solutions globally.