Standard Chartered-Backed Libeara Launches MG 999 Tokenized Gold Fund in Singapore

Libeara, supported by Standard Chartered, has introduced a tokenized gold investment fund called MG 999 in Singapore. This fund allows institutional investors to gain synthetic exposure to gold while also providing financial support to jewelry retailers. The launch coincides with rising interest in safe-haven assets amid global economic uncertainties.

Key Takeaways

Libeara's MG 999 fund offers tokenized, synthetic access to gold for institutional investors in Singapore.
The fund is aimed at professional investors, eliminating traditional costs associated with physical gold.
The launch reflects a growing trend among financial institutions to tokenize real-world assets using blockchain technology.
MG 999 features a lending element specifically for the jewelry sector, aiding retailers like Mustafa Gold.

Institutional investors adopt Libeara’s MG 999 tokenized gold fund to access synthetic gold yields in Singapore.

Introduction to MG 999 Fund

Libeara, a blockchain infrastructure platform backed by Standard Chartered’s SC Ventures, recently announced the launch of its tokenized gold investment fund in Singapore. The MG 999 fund enables institutional investors to gain exposure to gold via blockchain-based tokens issued on Libeara’s ledger. Each token is intended to match the current spot price of gold.

Standard Chartered's Expansion into Singapore

According to FundBridge, a collaborator on the project, the fund's structure bypasses traditional vaulting and logistics costs, ensuring that investors receive the necessary price exposure. “FundBridge’s priority is to bridge traditional fund governance with emerging digital infrastructure,” stated CEO Sue Lynn Lim. She emphasized the importance of collaborating with partners to create a framework conducive to a regulated environment while advancing the use of real-world assets on-chain.

Unique Features of MG 999

The MG 999 fund is exclusively for institutional and accredited investors. Unlike traditional gold investment funds, it does not hold physical gold bullion. Instead, the tokens are designed to reflect the market performance of gold, enabling a synthetic exposure mechanism as explained by FundBridge.

Trends in Tokenization

The launch of MG 999 is part of a broader trend where established financial institutions are tokenizing various real-world assets such as bonds, funds, treasuries, and precious metals. This trend highlights the potential expansion of blockchain technology beyond just cryptocurrencies.

SC Ventures has been extending its digital-asset operations within Asia. The bank has majority stakes in Zodia Custody and Zodia Markets, both focused on services related to institutional digital assets.

Demand for Gold and Fund Launch

The introduction of MG 999 aligns with a surge in global demand for gold. Central banks have been increasing their gold reserves this year, driven by fears regarding the future of the US dollar and geopolitical tensions. Analysts indicate that former President Donald Trump’s tariff policies have further fueled demand for safe-haven assets.

Recently, Standard Chartered also initiated a physically backed gold fund in Singapore, serving as a custodian for the bullion stored at the Le Freeport vault located near Changi Airport. This new offering is aimed at investors who prefer exposure to allocated gold rather than tokenized assets.

Support for Jewelry Sector

Notably, the MG 999 fund incorporates a lending aspect targeted at Singapore's jewelry industry. Mustafa Gold, a prominent retailer in the region, has been appointed as the first borrower for the fund. This arrangement allows Mustafa to secure financing based on its gold jewelry inventory while continuing to showcase the pieces in-store.

“Gold-linked tokens are quite unique and complex,” remarked Mustaq Ahmad, founder of Mustafa. He pointed out that MG 999 provides retailers with the opportunity to embrace digital innovation, improving their management of working capital.