Nikolas Sargeant
Standard Chartered's blockchain venture arm SC Ventures has launched a digital gold investment vehicle through its portfolio company Libeara, partnering with FundBridge Capital to bring institutional-grade precious metal exposure to Singapore's professional investor market via distributed ledger technology.
The tokenized fund, designated MG 999, provides accredited participants with synthetic gold price exposure through blockchain-based tokens that track spot market valuations without requiring physical bullion storage. FundBridge Capital designed the structure to eliminate traditional vaulting and logistics expenses while maintaining full regulatory compliance within Singapore's financial framework.
"FundBridge's priority is to bridge traditional fund governance with emerging digital infrastructure," CEO Sue Lynn Lim explained to Nikkei Asia. "We've worked closely with our partners to ensure the framework meets the standards of a regulated fund environment while advancing the use of real-world assets on-chain."
The initiative marks another step in Standard Chartered's systematic expansion into digital asset infrastructure across Asian markets. SC Ventures maintains controlling interests in Zodia Custody and Zodia Markets, both servicing institutional digital asset requirements, while Libeara focuses on blockchain-based financial products.
Unlike conventional gold funds holding allocated bars in secure facilities, MG 999 issues tokens engineered to mirror gold's market movements through a synthetic exposure mechanism. FundBridge emphasizes this approach delivers operational efficiency without compromising investor protections mandated by Singapore's regulatory authorities.
The fund's structure incorporates a lending facility targeting Singapore's jewelry retail sector. Mustafa Gold, a prominent local retailer, serves as the inaugural borrower under arrangements allowing merchants to secure credit against jewelry inventory while maintaining merchandise on sales floors.
"Gold-linked tokens are quite unique and complex," noted Mustafa founder Mustaq Ahmad. "MG 999 lets retailers tap digital innovation and better manage working-capital needs."
The launch coincides with heightened institutional interest in precious metals. Central banks globally have expanded gold reserves throughout 2024 and early 2025 amid concerns about dollar stability and geopolitical tensions amplified by trade policy shifts under President Donald Trump's administration.
Standard Chartered previously collaborated with other financial institutions last month to establish a physically-backed gold fund in Singapore, with the bank providing custodial services for bullion stored at Le Freeport's high-security vault facility near Changi Airport.
That offering serves investors preferring allocated physical metal over digital representations.The tokenized approach represents established finance's growing comfort with blockchain infrastructure for traditional assets including bonds, treasuries, and now precious metals, a sector evolution extending beyond cryptocurrency markets' historical volatility concerns.
