As the first European regulated platform for investment into tokenised precious metals, VNX aims to make it easier for accredited investors to use its tokenised gold platform without having to rely exclusively on crypto payments or wire transfers.
According to financialit.net, the tokenisation of physical assets such as precious metals can be difficult, especially when it comes to reaching out to casual investors. Casual investors may see cryptocurrency and decentralized finance as inaccessible, but conventional payment methods provided by Visa and Mastercard are much more familiar.
VNX’s partnership with Visa and Mastercard aims to bridge the gap between potential investors and digital assets. This way, both new and experienced investors alike can diversify their portfolios by leveraging payment methods that they know and trust.
Previously, VNX’s fiat payment capabilities included bank transfers and deposits in Bitcoin and Ethereum. The addition of credit card payments aims to bring both peace of mind and ease of access to potential investors. Credit payments on VNX are instant and don’t require as much personal information as bank transfers.
According to company representatives cited by financialit.net, onboarding these two fiat credit cards to VNX’s platform is an important step, as it enables greater accessibility and convenience for potential customers.
VNX Gold is an Ethereum-based token that represents a user’s direct ownership of physical gold as certified by the London Bullion Market Association (LBMA).
According to delano.lu, owning gold and other physical commodities in token form can alleviate problems related to acquisition costs and storage solutions. Through VNX, Investors can use fiat currency or cryptocurrency to buy gold, but only after a strict onboarding process.
Each token represents one gram of gold, and the corresponding bullion bars, certified by the London Bullion Market Association (LBMA), remain in a vault in Liechtenstein. Each serial number is linked to a token on the platform based on Ethereum.
In order to transfer VNX gold tokens to another wallet on the Ethereum blockchain, VNX charges a 0.15% fee. They do not charge storage fees, however.
In 2021, The Irish Times explored whether gold really is the best bet for building personal wealth. The publication quoted representatives from Smith & Williamson and highlighted that gold’s reputation as a safe haven does not make it risk-free, as it has seen its own share of volatility in the past.
According to Coindesk, many investors traditionally see gold as a hedge against inflation. In the context of tokenisation, gold-backed tokens could provide some protection against volatility, at least according to a foreign exchange brokerage representative cited by the same source.
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