Institutional Investor Allocates $1M to GLDY-Based Gold Trade

A strategy run by Metalayer Capital, backed by an initial institutional allocation, employs GLDY as the long side of a delta-neutral gold trade. This creates a fresh demand channel for Streamex's yield-bearing tokenized gold, with further investments expected to follow.

Streamex Corp., a technology firm listed on Nasdaq that aims to reshape commodity markets through tokenization, has obtained a commitment of institutional capital. The move tests whether tokenized commodities can attract buyers beyond individual investors.

An unnamed institutional investor has made a first allocation of $1 million to a relative-value strategy that uses GLDY, Streamex's gold-backed token, as its long gold position, according to a person with knowledge of the matter who is not authorized to speak for the company. The strategy is overseen by Metalayer Capital, a systematic investment manager, via its Aureon Relative Value Fund, the person added. Metalayer Capital, which declined to comment, was founded by former Two Sigma executives.

The strategy pairs GLDY with an offsetting short position in gold-linked perpetual futures, making it largely neutral to gold price moves, the person noted. Instead, it seeks to capture the yield GLDY generates, which Streamex aims for at 3.5% annually in additional gold through a gold-leasing program.

For Streamex, the key is the mechanics: capital deployed into the long position flows into GLDY, increasing the assets under management on which the company collects fees.

The $1 million initial allocation is final, with follow-on investments expected. Its importance lies in the buyer profile: tokenized securities like GLDY are attracting interest from institutions, not just accredited individual investors.

In August, Streamex set out a list of goals for the following 90 days. “Converting the first institutional allocations into GLDY was at the top of that list,” said Henry McPhie, the company’s co-founder and chief executive. He called the arrangement “a fundamentally different growth channel than selling to one investor at a time.”

Beyond the first $1 million, the remainder of the commitment is up to the investor, and there is no guarantee that any additional GLDY will be purchased.

The companies have other links. Metalayer also serves as a liquidity provider for GLDY on some trading platforms and can mint and redeem the token directly with the issuer, the person said. Streamex does not manage or sponsor the fund and receives no compensation based on the fund's fundraising.

GLDY is available only to eligible investors under exemptions from securities registration. So far, its holders have primarily been accredited investors seeking yield. Streamex has made six straight monthly distributions on the token, the latest in September, and publishes its gold reserves via a Chainlink proof-of-reserves feed.