XAUm Makes History: From Blockchain to Bullion in a Seamless Redemption

On April 22, 2025, Matrixdock achieved a significant industry milestone—successfully completing the first-ever publicly documented physical redemption of a tokenized gold asset. This event not only reinforces the integrity of XAUm’s 1:1 gold backing but also sets a new standard for transparency and trust in the tokenization of real-world assets.

Unlike synthetic gold products—such as ETFs or derivatives—that merely track price movements, XAUm offers direct ownership of fully allocated, LBMA-accredited physical gold, with built-in rights to redeem. With this redemption, Matrixdock showcases that tokenized gold can go beyond digital representation to enable final and physical settlement, just like traditional gold ownership, but on-chain.

To reinforce our commitment to real-time reserve verification and operational transparency, the redemption process was documented, with full client consent, providing the industry and our users with a rare, firsthand look at the mechanics of true physical convertibility.

The Physical Redemption at a Glance:

• Physical Gold Collection Date: April 22, 2025 (within T+3 of redemption request)

• Location: Maca Amit Vaults, Le Freeport, Singapore
  

• Redemption Type: Client self-collection
  

• Redemption Size: 1 standard LBMA gold bar (1 kg = 32.148 troy ounces)
  

• XAUm Tokens Burned: 32.148 XAUm (1 XAUm = 1 troy ounce)
  

The entire token transfer and burn sequence was executed on-chain and can be verified publicly via Etherscan, ensuring real-time auditability and proof of reserve integrity.

Why This Matters:

This redemption is a live demonstration of how blockchain-based gold tokenization transforms traditional asset ownership, delivering:

• Proof of reserves in real-time

• Investor-grade physical redemption is accessible to qualified holders

• End-to-end transparency, from token burn to physical handover

Most notably, the mirroring between on-chain and off-chain actions (i.e., simultaneous token burn and gold release) guarantees that XAUm maintains a strict 1:1 physical reserve ratio at all times.

Step-by-Step: XAUm Physical Redemption Flow

1. Customer Initiates Redemption Request
Specifies redemption location and delivery or self-collection method.

2. Matrixdock Confirms Redemption Request
Provides confirmation of relevant redemption details

3. KYC Verification
The client submits personal identification for compliance and verification.

4. XAUm Token Transfer
To redeem 1kg of gold (32.148 XAUm), the client transferred 32.22837 XAUm (which includes a 0.25% redemption fee) to Matrixdock’s designated wallet.

5. Token Burn + Custodian Coordination
Matrixdock burns exactly 32.148 XAUm tokens—mirroring 1 troy ounce per token—while simultaneously coordinating with the custodian to release a matching 1kg LBMA gold bar from secure storage, ensuring a precise 1:1 correspondence between the on-chain burn and the physical asset withdrawn.

6. Gold Bar Handover or Delivery
Verification of customer identity by multiple parties (Matrixdock and custodian vault/delivery)

See the Redeemed Gold Bar (Serial HS47386) matching the Matrixdock token transaction record in real-time →

The client, a seasoned crypto investor, described the experience as “seamless and confidence-inspiring—the perfect fusion of physical gold and crypto efficiency.” From initiating the redemption request to collecting a 1kg LBMA-accredited gold bar at the vault, every step was smooth, transparent, and professionally handled.

This milestone marked the first public documentation of an investor successfully converting digital gold into physical bullion without delay or friction, reinforcing their conviction in tokenized gold as a credible, fully-backed alternative and a strategic diversifier within a modern digital asset portfolio.

Physical redemption is currently available in Singapore and Hong Kong to verified users holding at least 32.148 XAUm and willing to undergo full KYC verification. Requests must be made at least T+3 days in advance. All physical redemptions are conducted in strict accordance with applicable regulatory and compliance requirements.

This historic redemption not only proves the robustness of XAUm’s physical backing but also provides a tangible example of how blockchain technology can power real-world financial infrastructure.

With Matrixdock, owning and redeeming investment-grade, LBMA-accredited gold has never been more transparent, efficient, and secure.

🔗 Ready to experience real gold on-chain?

Learn more about XAUm from our Gitbook or contact our team for inquiries at [email protected].