Standard Chartered-Backed Libeara Introduces Tokenized Gold Fund in Singapore

Standard Chartered-Backed Libeara Launches Tokenized Gold Fund in Singapore

Libeara, a blockchain infrastructure platform backed by Standard Chartered’s venture branch, SC Ventures, has officially launched a new tokenized gold investment fund in Singapore. This innovative fund brings one of the oldest safe-haven assets—gold—onto digital platforms.

Key Takeaways:

Libeara, in partnership with FundBridge, has introduced a tokenized gold fund that aligns with the spot price of gold.
This structure eliminates vaulting costs while maintaining regulated exposure to gold.
The initiative furthers Standard Chartered's focus on tokenizing real-world assets.

The fund, created in collaboration with FundBridge Capital, allows professional investors to access gold via blockchain-based tokens recorded on Libeara’s ledger.

Each token is designed to reflect the spot price of gold, providing a digital alternative to owning the actual metal.

FundBridge Highlights Cost-Effectiveness of Tokenized Gold

According to FundBridge, this innovative structure minimizes the traditional costs associated with vaulting and logistics while preserving price exposure.

“FundBridge’s goal is to connect traditional fund governance with modern digital infrastructure,” said CEO Sue Lynn Lim in a report to Nikkie.

“We’ve collaborated closely with our partners to create a framework that adheres to regulated fund standards and promotes the utilization of real-world assets on-chain.”

The fund, named MG 999, is available only to institutional and accredited investors. Unlike conventional gold funds, MG 999 does not hold physical gold bullion.

Instead, the tokens are designed to replicate gold’s market performance, offering a synthetic exposure method that targets operational efficiency while ensuring regulatory protections.

This initiative is part of a larger trend among established financial institutions aiming to tokenize real assets, including bonds and precious metals, as blockchain technology gains traction outside the volatile cryptocurrency sector.

SC Ventures has continuously expanded its digital asset presence in Asia. In addition to Libeara, the bank holds majority stakes in Zodia Custody and Zodia Markets, both of which focus on digital asset services for institutions.

This latest initiative highlights how traditional finance players are leveraging their established reputations to navigate a sector that has faced trust issues after several market upheavals.

Rising Gold Demand as Institutions Seek Alternatives

The launch coincides with a renewed global demand for gold. Central banks have been ramping up their gold reserves this year due to ongoing concerns about the US dollar's long-term stability and geopolitical tensions.

Recent tariff policies by former President Donald Trump have further increased interest in safer asset classes.

Last month, Standard Chartered teamed up with other financial institutions to introduce a physically-backed gold fund in Singapore, acting as a custodian for gold stored securely at Le Freeport vault near Changi Airport. This product caters to investors who prefer allocated metal over tokenized units.

MG 999 also includes a lending component aimed at the jewelry sector in Singapore. Mustafa Gold, a prominent retailer, has been appointed as the fund’s inaugural borrower.

This structure allows Mustafa to obtain credit against its gold jewelry inventory while keeping the items available for display.

“Gold-linked tokens are quite unique and complex,” noted Mustafa's founder Mustaq Ahmad. “MG 999 enables retailers to leverage digital innovation and manage their working capital more effectively.”