What is VNX?
VNX Commodities AG is a company registered in Liechtenstein that offers services for purchasing, selling, and storing precious metals, as well as generating and managing tokens representing ownership of specific precious metals. It operates the VNX Platform at https://invest.vnx.li where customers can buy, sell, and manage VNX Gold tokens.
Key Features
- VNX Gold Tokens: VNX Gold Tokens are Ethereum-based ERC-20 tokens that represent ownership of physical gold bars. Each token equates to 1 gram of gold, ensuring direct asset linkage and transparency. These tokens are backed by real gold stored in secure vaults in Liechtenstein and can be traded freely on the Ethereum blockchain, facilitating easy ownership transfer without the need for physical movement.
- Gold Quality and Storage: The gold bars associated with VNX Gold Tokens adhere to LBMA (London Bullion Market Association) standards for quality and purity. They are stored in highly secure vaults operated by OZL in Liechtenstein, with comprehensive insurance against theft, damage, and loss. This setup ensures that the gold is safely separated from VNX's assets, providing protection even if VNX faces financial difficulties.
- Regulatory Compliance: VNX is fully compliant with regulatory requirements. It is registered with the Financial Market Authority of Liechtenstein as a TT Service Provider and holds a business license from the Liechtenstein Office of National Economy. Additionally, VNX adheres to AML (Anti-Money Laundering) and KYC (Know Your Customer) regulations to prevent illicit activities and ensure the integrity of the platform.
- Platform Features: On the VNX Platform, users can buy and sell gold, receiving VNX Gold tokens as proof of ownership. These tokens can be redeemed for physical gold delivery or converted into fiat or cryptocurrencies. The platform supports transactions in EUR, BTC, ETH, and USDC, with automated transaction processing to enhance efficiency and reduce manual intervention.
- Advantages: VNX offers increased accessibility and convenience by enabling online transactions without needing physical location visits. Fractional ownership allows for investments in smaller quantities of gold compared to physical gold. Token transfers simplify ownership transfer, and global accessibility means investors from around the world can participate. Additionally, transactions in gold are not subject to VAT in Liechtenstein, which may provide potential tax advantages.
- VNX Platform Token (VNXLU): VNXLU is a utility token used to pay fees on the VNX Platform, potentially offering cost savings for frequent users. The total supply is capped at 80 million VNXLU tokens with no additional minting capability, adding a layer of scarcity and value to the token.
How does VNX work?
- Purchase of Gold: Users can purchase gold on the VNX Platform using Euro or supported cryptocurrencies (Bitcoin, Ethereum, USDC). VNX Commodities AG then acquires the equivalent amount of physical gold from specialized dealers.
- Storage of Gold: The purchased gold is stored securely in a vault operated by OZL Offenes Zollager in Liechtenstein AG. It is held in the name of the VNX Gold token holder, segregated from VNX Commodities' assets, and fully insured against risks such as theft, damage, and loss.
- Issuance of VNX Gold Tokens: For every gram of gold purchased and stored, VNX Commodities issues one VNX Gold token. These are Ethereum-based ERC-20 tokens that represent ownership of the physical gold.
- Token Management: Users can manage their VNX Gold tokens through their VNX Platform account. Tokens can be transferred to any Ethereum wallet that supports ERC-20 tokens, offering flexibility in managing ownership.
- Gold Entitlements Register: VNX Commodities maintains a register linking Ethereum wallet addresses to their gold entitlements. Token holders can check their holdings via their VNX Platform account or by entering their wallet address on the VNX website.
- Selling Gold: Users can sell their VNX Gold tokens back to VNX Commodities through the platform, receiving proceeds in fiat currency or supported cryptocurrencies.
- Physical Gold Redemption: Token holders can request physical delivery of their gold (minimum 1 kg). They can choose to collect the gold from the vault in Liechtenstein or have it delivered to a specified address, at their own expense and risk.
- Token Transfers: VNX Gold tokens can be transferred between users without needing VNX Commodities' consent. However, the sender should notify VNX Commodities of the recipient's details for record-keeping, and the new recipient must register on the VNX Platform to use its services fully.
- Fees: VNX Commodities charges fees for its services, detailed in the Fee Schedule of the Terms.
- Regulatory Compliance: VNX performs KYC and AML checks on users to prevent illicit activities. Users who fail these checks are not permitted to use the platform or its services.
- VNX Platform Token (VNXLU): This separate utility token is used for paying fees on the VNX Platform and may be utilized for future functionalities or economic incentives.
What role does VNX play in the RWA Tokenization ecosystem?
- Asset Tokenization Pioneer: VNX is at the forefront of real-world asset tokenization, focusing on precious metals like gold. They create a bridge between traditional physical assets and the digital blockchain world, pioneering new ways to manage and invest in these assets.
- Facilitator of Digital Gold Ownership: By offering VNX Gold tokens, VNX enables investors to own and trade gold digitally. Each token represents 1 gram of physical gold, allowing for fractional ownership and simplifying the transfer of gold ownership rights.
- Custodian and Vault Service: VNX Commodities AG serves as the custodian for the physical gold backing the tokens, ensuring secure storage in professional vaults located in Liechtenstein. This role provides both physical and financial security for the underlying gold.
- Regulatory Compliant Platform: Operating within Liechtenstein's blockchain-friendly regulatory framework, VNX is registered with the Financial Market Authority as a TT Service Provider. This regulatory compliance adds legitimacy to their tokenization efforts.
- Liquidity Provider: By tokenizing gold, VNX increases the liquidity of this traditionally illiquid asset. Investors can trade VNX Gold tokens more easily than physical gold, potentially on various crypto exchanges, enhancing market efficiency.
- Technological Innovator: VNX employs blockchain technology, specifically the Ethereum network, to create and manage their tokens. The use of smart contracts ensures secure and transparent management of tokenized assets.
- Market Accessibility Enhancer: VNX makes gold investment more accessible by allowing fractional ownership and reducing barriers to entry, making it possible for a broader range of investors to participate in gold markets.
- Cross-border Transaction Facilitator: The digital nature of VNX Gold tokens simplifies cross-border transactions for gold ownership rights, making it easier for international investors to trade and manage their gold holdings.
- Integration of Traditional and Crypto Finance: VNX bridges traditional gold finance with cryptocurrency by enabling transactions in both fiat (Euro) and cryptocurrencies (Bitcoin, Ethereum, USDC), facilitating a seamless integration of these financial worlds.
- Real-time Audit Trail Provider: Blockchain technology provides a real-time, immutable audit trail of all transactions, enhancing transparency and trust in the ownership and trading of gold.
Use cases powered by VNX
- Asset Tokenization: VNX is a leader in the tokenization of real-world assets, focusing on precious metals like gold. By converting physical gold into digital tokens, VNX bridges the gap between traditional asset ownership and modern blockchain technology, paving the way for new investment opportunities.
- Facilitator of Digital Gold Ownership: VNX enables users to own and trade gold in a digital format through VNX Gold tokens. Each token represents 1 gram of physical gold, facilitating fractional ownership and making it easier to transfer gold rights compared to physical gold, which requires physical handling and storage.
- Custodian and Vault Service: VNX Commodities AG acts as the custodian for the physical gold backing the VNX Gold tokens. The gold is stored securely in professional vaults in Liechtenstein, ensuring that it is protected against risks such as theft, damage, and loss, and is kept separate from VNX's assets for added security.
- Regulatory Compliant Platform: Operating within Liechtenstein's favorable regulatory environment for blockchain technology, VNX is registered with the Financial Market Authority of Liechtenstein as a TT Service Provider. This compliance adds legitimacy to their tokenization process and ensures adherence to regulatory standards.
- Liquidity Provider: By tokenizing gold, VNX enhances the liquidity of this traditionally illiquid asset. VNX Gold tokens can be traded more easily than physical gold, potentially on various crypto exchanges, providing greater market access and liquidity for investors.
- Technological Innovator: VNX utilizes blockchain technology, specifically the Ethereum network, to create and manage VNX Gold tokens. The use of smart contracts ensures secure and transparent management of these tokenized assets, leveraging blockchain’s immutable and decentralized nature.
- Market Accessibility Enhancer: VNX lowers the barriers to gold investment by offering fractional ownership through digital tokens. This innovation allows a wider range of investors to access gold markets, including those who might not have the means to invest in physical gold due to high costs.
- Cross-border Transaction Facilitator: The digital format of VNX Gold tokens simplifies the process of transferring gold ownership rights across borders. This ease of cross-border transactions enables global investors to trade and manage their gold holdings more efficiently.
- Integration of Traditional and Crypto Finance: VNX integrates traditional gold finance with cryptocurrency by enabling transactions in both fiat currencies (Euro) and cryptocurrencies (Bitcoin, Ethereum, USDC). This hybrid approach facilitates a seamless connection between traditional and digital financial systems.
- Real-time Audit Trail Provider: By leveraging blockchain technology, VNX provides a real-time, immutable audit trail for all transactions involving VNX Gold tokens. This transparency enhances trust and accountability in the ownership and trading of gold, offering a clear and verifiable history of all transactions.
