ii) A decentralised financial ecosystem allowing users to utilise $GOLD and a range of applications over a roadmap including Yield, DeFi, and Digital Asset protocols
iii) $BULL, a utility token representing the ecosystem. BullionFX operate an online decentralised exchange, and plan to launch a decentralised exchange based app for Android & iOS where users may sign up and access products
You shouldn't trust any centralised platform to hold your wealth or assets. You may even be surprised to learn that a component of your banks business model is to loan out your savings to other clients for a return. There is just no way to truly tell whether a trading app, exchange, or centralised platform truly holds your funds or not despite what they say and offer.
BullionFX is DECENTRALISED. We've developed our systems to never hold client funds on default, meaning our users at all times hold their funds, assets, and currency including $GOLD on their own cold wallet devices. The BullionFX system works through connecting your cold device to log in and use, and disconnecting when you leave.
BullionFX is returning custody to the user, as it should be, through the provision of our industry leading, fully decentralised, custody solution.
BullionFX was founded by industry and blockchain experts who have been responsible for developing industry leading solutions around custody, audit, and payments. To see the latest team, visit our About us page.
BullionFX was initially formed in 2019 as a Cayman Island headquartered business, as at that time the Cayman Islands were the leading regulated authority through CIMA and their virtual asset license of which BullionFX was an early applicant. In its early days BullionFX recruited a significant team of stakeholders and progressed to developing core audit and custody products including BDO Blockchain, and a decentralised exchange that looks and feels like a centralised exchange to then progress to developing $GOLD.
Today BullionFX operates several subsidiaries and/or is in the process of establishing subsidiaries in which it intends to bring its product to market, including the UK, India, UAE, Australia, and Africa. In each territory our subsidiaries have applied and recieved, or are in the process of applying for various licenses which we plan to obtain before launching in various territories. For the avoidance of doubt our systems have been developed to geo-block the United States and we have no interest in operating within the United States at this time.
$GOLD is designed to be a currency and storage of wealth which is easily divisible and transferrable.
$GOLD is an *ERC-20 based token which acts as a redemption right to 1 troy ounce of physical gold. The $GOLD token is able to be kept on exchange or on a cold wallet, traded, transfered, or utilised through various mechanisms in the blockchain world. Holders of $GOLD are able to trade, sell, or redeem $GOLD at any time. Holders of $GOLD are able to request redemption of physical gold (in minimum denominations of 1kg) at any time through the BullionFX OTC process (note: redemption requires a user to be a client, complete KYC, and cover logistical costs provided by Brinks)
*Note: $GOLD will develop on other chains as volume increases as per its roadmap
The worlds largest trading ground for gold are the wholesale spot markets operated out of London, Singapore, and the UAE. StoneX is a prominent operator of global spot markets offering LBMA grade physical gold at spot prices to a range of qualified market participants including BullionFX, brokers, resellers, banks, and others. Market brokers and financial services generally buy in this market, mark-up price 1-2%, and offer gold to retail buyers like you physically or through a trading app. Usually you also have to sell back through the same channel you purchased.
BullionFX custody uses live price API’s from the spot market to manage its own balance sheet, and ensure any $GOLD sold or purchased is identical or as close to wholesale spot market as possible.
When $GOLD is purchased from BullionFX or ‘minted’, a $GOLD token is transferred from the BullionFX custody wallet to the purchasers wallet. In realtime though our API one troy ounce of physical bullion is purchased from the StoneX spot market and a new $GOLD token is ‘minted’ and sent to the BullionFX custody wallet to reflect the increase in physical gold bullion held. $GOLD is ‘burned’ at any price under spot market, and as such is $GOLD is sold to BullionFX the token must be sent to a wallet to be ‘burned’, upon burning a $GOLD token one troy ounce of gold is released from BullionFX custody and sold on the spot market to maintain the balance sheet of BullionFX custody.
Every gold product globally, physical or digital, has historically added a small spread on top of price. The entire business model of the gold industry has been to generate a margin of profit on sales. BullionFX are breaking that.
BullionFX have a larger mission around creating a decentralised financial ecosystem, with many products or which many have commercial models we believe are more prosperous than taking a small spread on gold. We are seeking to make money from yield, DeFi, and synthetic products built around $GOLD. Philanthropical $GOLD itself is core our our vision, ecosystem, and our own commercial prosperity.
Core to our agenda of building this financial ecosystem and obtaining a critical mass, it was important $GOLD had no added spread. With no spread $GOLD can be easily adopted by exchanges, financial platforms, foundations, Dapps, and allow users to build over the security of $GOLD. Ultimately if $GOLD was to have utility outside of the blockchain world as a currency with applications beyond banking the unbanked, it was also important to have a philanthropical approach.
BullionFX have developed a transactional fee within $GOLD which is equal to 0.12% on transaction outside the BullionFX ecosystem, with 100% of these funds being contributed to the BullionFX Reserve Wallet which is returned to the BullionFX community and users as a mechanism to utilise transactional fees to reward users.
$GOLD has solved 3 core issues in the industry which no other gold backed currency has;
i) $GOLD is the world’s first intstitutionally audited gold backed blockchain currency. Many lack audit, and those that are audited are generally financially or physically audited and lack audit of an institutional grade equivalent to what a gold ETF may be required to undertake
ii) $GOLD has solved the inherent liquidity issues between blockchain and physical spot markets. Many tokens force you to find a buyer, or force you to trade within their own platform where they may dictate price as opposed to spot market. SOlving liquidity provided assurance that large amounts of $GOLD can be traded at physical spot market price and is not inherently ransom to a shortage of liquidity in blockchain markets
iii) $GOLD has an ecosystem. Bringing gold back as a currency requires it to be utilised. Earn, borrow, stake, and utilise as collateral to access a world of stock indices and assets as our synthetic roadmap develops.
It is important to note that gold is generally either ‘Physical’ or ‘Paper’. Many gold products within the banks, funds, and trading apps are backed by ‘Paper’. Paper gold exists to facilitate efficiency within the banks and institutions, for example if one client is short 1,000kg of gold and one client holds 1,000kg of gold, an institution wishing to balance its books can legally hold zero gold through offsetting client accounts. There have been industry concerns for decades around paper gold. Currently the world paper gold ratio is 124:1 meaning over 124x gold exists on paper than the physical gold backing it.
Physical gold is a must for any savvy investor, which has largely limited options to investing in a physical gold backed ETF or physical gold itself.
Investors who buy physical gold traditionally pay above spot price on purchase, and sell below spot price, as gold brokers generally need to re-wrap and refresh bars and also take a profit margin. While owning physical gold they have additional issues around storage and security. Investors who buy gold ETF’s dont have these issues however they have issues with redeeming physical gold, transferability of their gold, and utililisation of their gold as it doesn’t generate any return.
Blockchain technology has allowed us to fractionalise and digitise physical gold, allowing users to have the benefits of physical ownership while also offering price stability, transferability, and utilisation through enabling gold to be transactional and utilised to generate a return or used as collateral in a world of applications
Financial advisors are becoming increasingly aware of blockchain technology and the benefits it can bring to financial markets. If your financial advisor hasn’t heard of us, we’d love to meet them if you would be kind enough to make an introduction. BullionFX has undertaken significant work around audit, liquidity, and working through B2B networks to provide gold as a currency which can provide enormous benefit to any provate wealth application. BullionFX can enable financial advisors to offer their clients gold, that is physical (not paper), without margin or spread, with absolute redemption, and generated audit reports.