VNX, launched in Liechtenstein in 2022 and registered with the Financial Market Authority (FMA) registered platform for investment in tokenized precious metals, claims title as Europe’s first regulated platform for assets like gold.
The first product from VNX is VNX Gold, leveraging Ethereum, representing an ownership stake in physical gold bullion certified by the London Bullion Market Association (LBMA), according to a statement from the company.
A unique serial number stamped on each gold bar links it with the respective VNX Gold tokens, which are available on the VNX platform under the ticker VNXAU.
VNX allows investors to purchase tokenized gold in the form of VNX Gold tokens using Euros, Ether, or Bitcoin from anywhere around the world. Each VNX Gold token is said to represent ownership of one gram of physical gold, aiming to offer investors the advantages of its underlying commodity merged with the flexibility of a crypto asset.
Investors may transfer their VNX Gold tokens to any Ethereum wallet while the physical gold is said to be stored in a vault in Liechtenstein with insurance and zero storage fees. VNX adds that holders may collect their physical gold or receive a minimum of one kilogram of gold via global delivery.
VNX notes that it is compliant with Liechtenstein’s Tokens and TT Services Providers Law (TVTG, also known as the Blockchain Act) and regulated by the Financial Market Authority (FMA), VNX internally carries out all necessary tokenization services. The VNX platform is KYC and AML compliant, providing the institutional grade standards of investor protection for a reliable hedge instrument for crypto investors.
Alexander Tkachenko, founder and CEO of VNX, explained that crypto markets are volatile and a gold backed token provides the same benefit as physical gold minus the hasslet of storage and transportation.
“With the Blockchain Act, Liechtenstein wanted to create a legally secure link between the token economy and the physical world in order to build a greater degree of trust, which is important for both blockchain businesses and citizens,” says Dr. Thomas Dünser, Director of the Office for Financial Market Innovation and Digitization of the Principality of Liechtenstein. “It is good to see that smart and innovative projects are making use of this legal fundament.”