CONFIRMED: Gold Tokenization Gets $1.1B Financing
Coin telegraph via ZH
BioSig, Streamex Target Gold Tokenization With $1.1B Financing
Christopher Tepedino via CoinTelegraph.com,
BioSig and Streamex have secured $1.1 billion in growth financing to support their pivot into onchain commodities, starting with gold.
The companies, which signed a letter of intent to merge on May 5, say the funding will help establish a gold-backed treasury business focused on tokenized financial instruments. Of the total funding, $100 million comes in the form of convertible debentures, while the remaining $1 billion is an equity line of credit.
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BioSig’s share price has fallen 27.4% on the news on Tuesday, though it is still up 541% in the past six months.
The entry into tokenized gold puts the company up against existing RWA players with significant market share and liquidity.
Paxos Gold and Tether Gold are among the companies exploring tokenized gold. Both cryptocurrencies are backed by physical gold stored in vaults. According to CoinGecko, PAXG has market capitalization of $926 million at this writing, while XAUT holds a $814.5 million market cap.
Henry McPhie, CEO of BioSig Technologies and co-founder of Streamex, told Cointelegraph that the new company’s approach will be “slightly different” than Paxos and Tether.
[Edit- There’s nothing slightly different about this. What they likely intend to do is to create product and sell it like an ETF. Trading comes after. Think of them more like an investment bank than an exchange. This will be the model fdic banks use as well]
“At Streamex, what we aim to do is use our balance sheet capital to seed liquidity into creating gold and structured product gold-related tokens,” McPhie said. “Slightly different than the PaxG and Tether Gold model. We have the ability to potentially purchase gold and gold-like assets ourself, tokenize those assets and then bring them to market.”
He said the company expects to generate revenue from its tokenized gold fund through four routes: origination fees, tokenization fees, secondary trading fees and spread income. The plan is to bring the first tokenized gold asset to market by early 2026.
Tokenized commodities a small portion of RWA market
RWA tokenization has emerged as one of the crypto's trends in 2025, further blurring the lines between traditional finance and digital assets. According to RWA.xyz data, tokenized commodities lag behind other tokenized assets such as US Treasurys and the private credit market. However, it has been growing.
Tokenized commodities market over time. Source: RWA.xyz
The total tokenized commodities market cap is $1.62 billion, 6.6% of the overall tokenization market of $24.5 billion.
Paxos Gold and Tether Gold account for 98.9% of the total market value of tokenized commodities. Of the eight precious metal RWA products listed on RWA.xyz, six are tied to gold, one to silver, and one to platinum.
Statista projects that the general commodities market will reach $142.9 trillion in 2025.
US gold Explorers will see the greatest returns in the market soon enough whether gold is $3000’s or $4000’s