🪙WisdomTree Gold Token: An Overview

DeFi concepts of transparency, convenience and innovation coupled with security and reliability

Each WisdomTree Gold Token is a tokenized means of owning gold. Tokenized assets make use of blockchain technology. Instead of holdings and transactions being held on many databases across multiple financial service providers, these entries are stored on an open, decentralized database called a ‘blockchain’. It is digital and open source software, meaning that anyone with a cell phone or computer can potentially have access.

Blockchain technology has the potential to provide people with the ability to access reliable, durable, and transparent means of storing and transferring value. While physical gold has historically been one of the most recognized and accepted ways in which to store value, many people may find it difficult to conveniently invest in gold, save in gold and/or make payments supported by physical gold.

WisdomTree Digital Movement, Inc. (“WisdomTree Digital” or “WisdomTree Digital”)[1] acts as the issuer of the WisdomTree Gold Token (“Gold Token”), which is a digital token recorded on the Stellar blockchain or Ethereum blockchain representing electronic document of title to physical gold.[2] Each Gold Token functions as a document of title to the underlying gold meeting the LBMA’s delivery standards. Each Gold Token represents ownership of a one-troy ounce portion of an LBMA gold bar. All gold associated with a Gold Token conforms to the LBMA’s good delivery standards and is maintained with an independent gold custodian, HSBC, via its vaulting facilities located in London. HSBC has contractually committed to maintain a continuous allocation (i.e., segregation) process whereby each gold bar associated with a Gold Token is segregated within the gold custodian’s vaults with a serial number in accordance with LBMA’s good delivery standards.

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[1] WisdomTree Digital Holdings, Inc. (“WDH”), the parent company of WisdomTree Digital Movement, Inc., currently acts as the issuer of the Gold Token and has the contractual relationship with HSBC Bank, PLC (the “Custodian” or “HSBC”) until migrated to WisdomTree Digital Movement, Inc. Accordingly, references herein to WisdomTree Digital in the foregoing capacities shall mean WDH until updated.

[2] A document of title, such as the Gold Token, is a contract with, not an interest in, the bailee (i.e., WisdomTree Digital or its affiliate). A Gold Token user’s ability to obtain gold in exchange for a Gold Token depends upon WisdomTree Digital’s maintenance of the gold with the Custodian and compliance with the conditions for retrieval. The gold will be held in a customer account that would not be subject to the insolvency of WisdomTree Digital.