Key disclosureNamed custodian, allocated storage, bar list, independent audit
Key termMinimum redemption size — it determines who can enforce the claim
Hidden costStorage and insurance, charged as fees or metal reduction
FBT Swap
What you should know
A gold token represents a quantity of metal held somewhere by someone. The appeal is obvious: exposure to a physical commodity with on-chain transferability and no vault of your own.
Everything depends on whether the claim is honoured, and the terms of redemption usually tell you more than the marketing does.
Who holds the metal, and where
A named custodian in a named jurisdiction, ideally with allocated storage where specific bars are assigned to the issuer rather than pooled. Unallocated storage makes you a general creditor of the custodian.
Bar lists with serial numbers and independent audits are the meaningful disclosures. A statement that reserves are "fully backed" without either is not a disclosure.
The redemption terms
Minimum redemption size is the key figure. If redemption requires a full bar, a holder with a small position cannot redeem and the arbitrage that supports the peg depends entirely on large holders.
Also check fees, geographic restrictions, required verification and typical processing time. Each one narrows who can actually enforce the claim.
Jurisdiction decides whether any of it is enforceable. A custodian in a venue with strong property law and an issuer incorporated in one without is a common arrangement, and the weaker of the two is the one that matters on the day something goes wrong.
Costs that accrue
Storage and insurance are real ongoing expenses, charged either as a management fee, a small per-transfer fee, or gradual reduction of metal per token. An apparently free token is charging somewhere.
Over long holding periods these compound and are the main reason a token underperforms the metal it tracks.
Tracking in practice
The token tracks the commodity when creation and redemption work. If either is restricted, it trades on sentiment and can deviate — usually at exactly the moment holders most want the link to hold.
FBT Swap shows market data for listed instruments with the source named. It does not custody metal, does not issue commodity tokens and does not process redemptions.
At a glance
At a glance
01
Key disclosure
Named custodian, allocated storage, bar list, independent audit
02
Key term
Minimum redemption size — it determines who can enforce the claim
03
Hidden cost
Storage and insurance, charged as fees or metal reduction
04
Peg holds while
Creation and redemption remain open and economical
FAQ
Frequently asked questions
Clear answers before you decide.
Can I actually redeem for physical metal?+
Sometimes, subject to minimums, fees, verification and location. For many holders the minimum exceeds their position, which means the claim is practically unenforceable by them.
What does "fully backed" mean here?+
Only what the issuer defines it to mean. Allocated storage with serial-numbered bars and independent audits is meaningful; the phrase on its own is not.
Why does the token lag the metal price?+
Ongoing storage and insurance costs, charged as fees or as a gradual reduction in metal per token. Over long periods this is the main source of divergence.
Risk notice
Crypto assets are volatile and on-chain transactions cannot be reversed. You can lose money, including all of it. Nothing here is financial advice.
