Circle's Arc Blockchain Introduces First Tokenized Gold Product

Gold bars stored in Hong Kong and Singapore vaults have now been assigned an address on Circle's Arc blockchain, which has gained its inaugural tokenized gold asset.

The token is issued by Matrixdock, and eligible sellers can receive their funds on the same day according to the company. However, Matrixdock's own regulations specify a waiting period of three business days.

Initial Tokenized Gold Asset Still Requires Three-Day Settlement

In April 2025 a customer entered a Singapore vault and exited with one kilogram of gold after Matrixdock converted a token back into physical metal. The process took three days.

Each XAUm token represents one ounce of gold, held by Brink's or Malca-Amit and connected to a specific numbered bar. Matrixdock makes reserve reports public and also compensates the auditor who verifies them.

Gold transactions are slow globally. London, the largest market, completes settlements two days after a trade. Matrixdock's documentation continues to advise sellers to wait three working days for payment.

The same-day offer applies only to eligible sales, and Matrixdock requires proof of the transaction beforehand. The cash-out period operates on New York trading hours, while the vaults are located twelve hours ahead.

"Gold has been an institutional reserve asset for centuries, but holding it and using it have always been two different things," said Eva Meng, head of Matrixdock, in a statement provided to BeInCrypto.

XAUm's Position Relative to Larger Gold Tokens

Although XAUm promises quicker cash access than competitors, it demands significantly less for those wanting physical metal. Paxos requires 430 PAXG for a London Good Delivery bar, with the customer arranging delivery. Matrixdock asks for 32.148 tokens to obtain a one-kilogram bar, collectible in Singapore or Hong Kong.

XAUm operates on more blockchain networks than either competitor. It is available on eight networks, including Arc. Tether Gold runs on Ethereum and BNB Smart Chain. PAX Gold added Solana in June and otherwise remains on Ethereum.

The low threshold for physical metal provides a genuine advantage for those seeking gold in hand, as $139,000 purchases a collectible kilogram via XAUm, whereas PAXG requires roughly $1.8 million before Paxos releases a bar.

However, supporting eight chains with a $71 million token creates thin liquidity spread across many venues, and XAUt and PAXG remain on two networks because depth outperforms reach when someone needs to sell large quantities quickly.

Infrastructure Built for Banks That Debuted with Meme Tokens

Meng's comments come as Arc attempts to demonstrate its purpose. Circle launched the network on September 16 with support from Visa, BlackRock and Standard Chartered.

The launch day focused elsewhere, as platforms for creating joke tokens accounted for 82% of the $410.8 million in trading volume on Arc's first day, according to BeInCrypto.

XAUm is the smallest among major gold tokens by market value. On May 1 it was worth $70 million. Tether Gold had a value of $2.52 billion, while PAX Gold stood at $2.32 billion.

XAUm's market price is approximately $4,318, with a total value near $71 million. Matrixdock states that lending will be introduced later. Currently the gold can be sold on Arc but cannot be used as collateral for loans.