The Next Evolution of a 5,000-Year Asset Class

Gold has long served as the bedrock of financial systems, but traditionally, owning gold has meant a trade-off between physical security and capital utility. Tokenization offers a way to bridge this gap. As with all innovation, the implementation matters.

While many gold tokens exist, the true differentiator lies in the underlying technology. Most are static digital representations with limited on-chain functionality. XAUm is different. It’s not just an on-chain record, it is purpose-built for future readiness across the Web3 financial ecosystem.

This article explains why that distinction matters, particularly for traditional finance (TradFi) stakeholders seeking to understand the potential of real-world assets (RWA).

From Physical Bullion to Capital Utility

Backed 1:1 with 99.99% LBMA-accredited physical gold, securely vaulted in institutional-grade vaults in Singapore and Hong Kong, XAUm transforms gold from a passive asset into a natively digital, programmable asset.

XAUm is:

• Fully composable across DeFi protocols for lending, trading, and collateral use
  
  

• Verifiably backed by LBMA-accredited gold, with real-time on-chain proof of reserves
  
  

• Seamlessly interoperable across multiple blockchains via Chainlink CCIP and LayerZero
  
  

• Redeemable, offering holders the option to redeem for physical gold

XAUm’s Value Proposition = Physical Gold Intrinsic Value + DeFi Utility Value

Building on its institutional-grade physical backing, XAUm is engineered to unlock the core financial primitives that transform gold from a static store of value into a dynamic and digitally-enabled financial asset, offering capital efficiency, 24/7 liquidity, and financial automation. At Matrixdock, we believe that on-chain capabilities exemplify why to tokenize in the first place: 

Here’s how XAUm’s use cases within the DeFi stack:

• Lending and borrowing capabilities
  
  

• Decentralized liquidity via DEXs
  
  

• Automated investment and smart leverage strategies
  
  

• Yield generation opportunities through integrated on-chain ecosystems

The Implementation: XAUm Continues to Expand in the DeFi Ecosystem in 2025

To continue its momentum from 2024 and build toward the modernization of gold as a programmable asset, XAUm has expanded across major chains and integrated with leading protocols.

New Supported Chains

In addition to Ethereum and BNB Chain, XAUm is now live on:

• Plume – a purpose-built L1 for real-world assets (RWAs)
  
  

• Tron – a high-volume chain critical to global stablecoin flows
  
  

• HashKey Chain – the RWA infrastructure layer by HashKey Group
  
  

XAUm ensures cross-chain supply integrity through both Chainlink CCIP and LayerZero, promoting transparency and trust across each deployment.

Financial Innovation in DeFi: Unlocking New Liquidity and Capital Efficiency for Gold

Much like stablecoins, gold’s global recognition makes it an ideal candidate to serve as a universal, on-chain asset. When tokenized effectively, it has the potential to enable broader financial utility across the DeFi ecosystem.

XAUm embodies this potential. With integrations across leading decentralized protocols, it has unlocked new liquidity pathways and capital-efficient strategies, elevating gold from a passive reserve asset to an active participant in the programmable financial layer.

3 Core DeFi Functionalities Underpin XAUm’s Features

1. Decentralized Exchanges (DEXs) for Liquidity Access

XAUm is integrated with top-tier DEXs, ensuring 24/7 on-chain liquidity for traders and long-term holders alike:

• Uniswap (Ethereum) – A prominent DEX in the Ethereum ecosystem
  
  

• PancakeSwap (BNB Chain) – Deep XAUm/Stablecoin trading pairs with low gas fees
  
  

• Rooster Protocol (Plume) – RWA liquidity on RWAFi blockchain
  
  

These integrations provide XAUm holders with access to global DeFi liquidity, thereby enhancing price discovery and accessibility. 

2. Lending & Borrowing for Capital Efficiency

XAUm can be used as collateral across major decentralized money markets, unlocking value without needing to sell—a significant advantage when managing portfolio exposure or potentially deferring taxable events associated with asset liquidation.

• Curve Finance (Ethereum) – Borrow stablecoins via XAUm-backed collateral with a 93% LTV ratio
  
  

• Kinza Finance (BNB Chain) – Borrow/lend cross pool with integrated looping support
  
  

• Solera (Plume) – Variable-rate lending with XAUm as collateral with looping support
  
  

• Morpho (Ethereum) & Avalon (BNB Chain) – Lending protocols offering peer-to-peer optimization

In traditional markets, gold-backed borrowing involves multiple intermediaries, custodians, and significant operational friction, with hidden fees and opaque structures that erode capital utility.

3. Automated Looping: Smart Leverage Made Simple

With integrations like Kinza Finance and Solera, XAUm holders can now access automated looping mechanisms to:

• Use XAUm as collateral
  
  

• Borrow stablecoins
  
  

• Use borrowed funds to acquire additional XAUm
  
  

• Repeat this process — automatically
  
  

This mechanism allows users to increase their XAUm position with less upfront capital and without manual rebalancing. It’s designed to facilitate both tactical trading and long-term accumulation. This is where DeFi demonstrates its potential: automation reduces manual effort, and efficiency replaces friction.

Web3 Wallets + Financial Inclusion

XAUm is fully compatible with leading Web3 wallets, making it usable by individuals with internet access.

This opens new opportunities for:

• Emerging market users seeking access to  investment-grade gold without relying on traditional avenues
  
  

• High-net-worth individuals looking to programmatically manage gold exposure through next-generation financial tools
  
  

• DAOs and treasuries exploring gold-backed tokens as part of reserve diversification strategies
  
  

XAUm supports financial inclusion through enhancing access to the world’s most trusted store of value—on-chain.

Final Thoughts: XAUm Sets a New Standard for Tokenized Gold

XAUm redefines gold for the digital age, transforming it from a passive store of value into a dynamic, on-chain financial instrument. It is backed 1:1 by LBMA-accredited, vaulted gold, with full on-chain proof of reserves ensuring transparency and trust. Deeply integrated across DeFi protocols, XAUm is not only functional but also inclusive, accessible to users in both developed and emerging markets.

As DeFi and TradFi continue to converge as an inevitable future, XAUm stands at the intersection of trust and programmability, offering a credible and capital-efficient way to access gold in the next generation of global finance.

Disclaimer: This content is for informational purposes only and does not constitute financial, legal, or tax advice. The use of XAUm as collateral on decentralized finance (DeFi) platforms may involve significant risks, including but not limited to protocol-specific risks, smart contract vulnerabilities, market volatility, and potential liquidation events. Users are solely responsible for conducting their own due diligence and should consult with qualified financial, legal, and tax advisors before engaging in any DeFi activity. XAUm makes no representations or warranties regarding the availability, functionality, or ongoing support of any third-party DeFi protocols.