GCEX has added tokenised gold products to its digital asset lineup, enabling institutional and professional clients to trade Pax Gold and Tether Gold through its trading infrastructure. The move broadens the firm's digital asset product range as tokenised commodities gain traction among institutional market participants.
Pax Gold and Tether Gold Token Details
Pax Gold, issued by Paxos Trust Company, is an ERC-20 token on Ethereum. Each token represents one fine troy ounce of London Good Delivery gold stored in LBMA-accredited vaults. Paxos states that token holders maintain ownership rights to the underlying gold, subject to independent monthly audits.
Tether Gold, issued by TG Commodities, represents one troy ounce of 99.99% pure physical gold stored in Swiss vaults. The issuer claims that token holders have ownership claims on specific gold bars, with reserves undergoing periodic attestations.
Spot Trading and CFD Channels
The newly launched trading pairs allow clients to transact Pax Gold and Tether Gold against USDC, USDT, and the U.S. dollar. Additionally, GCEX offers contracts for difference (CFDs) linked to the same gold-backed tokens. CFDs are settled in USD and do not involve ownership of the underlying tokenised asset, providing institutional traders with price exposure via derivative instruments.
GCEX notes that tokenised gold can be traded on a 24/7 basis throughout the year.
Rising Institutional Demand for Tokenised Commodities
Tokenisation is emerging as a method to represent traditional financial assets on blockchain. Commodity tokenisation allows assets like gold to be transferred digitally while maintaining a link to physical reserves. Supporters argue that blockchain infrastructure can simplify settlement and expand access to commodity markets. Institutional trading firms are increasingly exploring tokenised assets as part of broader digital asset market infrastructure.
GCEX CEO on Blockchain-Settled Gold Trading
Lars Holst, CEO of GCEX Group, commented: "Following the introduction of Gold Futures CFDs last month, the addition of tokenised gold trading represents a natural next step in expanding our offering." He expects institutional clients to use the product to access gold through blockchain-based settlement systems. "We look forward to offering institutional clients efficient, fully on-chain access to physical gold via leading tokenised products," Holst said, adding that the offering allows clients to transact gold using digital settlement mechanisms.
Digital Prime Brokerage Background
GCEX operates as a digital prime brokerage, providing trading infrastructure for institutional participants across forex and digital asset markets. Its XplorDigital platform offers liquidity connectivity, risk management tools, and turnkey technology packages. The firm has offices in London, Copenhagen, Dubai, Kuala Lumpur, and Glasgow, and holds regulatory authorisations from financial authorities in the UK, Denmark, and Dubai.