Metal-Backed Tokens

Metal-Backed Tokens

Real-World Assets • Bullion • Physical Collateral

digitally vaulted bullion

Metal-Backed Tokens are digital assets that represent direct ownership of physical precious metals — most commonly gold or silver — stored in audited vaults. Unlike synthetic assets that track price but have no underlying collateral, metal-backed tokens are fully reserved and redeemable. Each token typically corresponds to a specific weight of physical metal (e.g., 1 gram of gold or 1 ounce of silver).

Use Case: Metal-backed tokens like $KAG and $KAU provide digital access to physical bullion, with the flexibility of crypto and the trust of vault-based reserves.

Key Concepts:

• Redeemable Asset — Tokens that can be converted to physical form on demand
• Bullion Vault — Secure storage facility for precious metal reserves
• 1:1 Backing — Each token represents exact weight of metal held in custody
• Allocated Storage — Segregated vault storage with auditable proof of reserves
• Physical Delivery — Option to redeem tokens for actual metal shipped to you
• Token Redemption — Process of exchanging tokens for the underlying asset
• Physical Collateral — Real-world assets backing each token in custody
• Asset-Backed Supply Model — Supply minted only when physical collateral is deposited
• Digital Bullion — Tokenized representation of physical precious metals
• Tokenized Gold — Gold represented as blockchain-native digital assets
• Tokenized Silver — Silver represented as blockchain-native digital assets

Summary: Metal-backed tokens bring the ancient store-of-value properties of gold and silver into the digital age. They combine the portability, divisibility, and programmability of crypto with the trust anchor of physical reserves — offering true ownership, not just price exposure.