Gold Goes Digital: BPG1 Token Aims to Bridge Regulation and Retail

SHERIDAN, Wyo. – November 26, 2025 – In a significant move to merge the stability of traditional assets with the efficiency of blockchain, BlocPal International and VNX Commodities AG have announced the launch of BPG1, a digital token fully backed by physical gold. The partnership aims to carve out a unique space in the burgeoning market for tokenized real-world assets (RWAs) by combining a stringent European regulatory framework with a distribution model focused on broad retail accessibility.

Each BPG1 token represents ownership of one troy ounce of 99.5% fine gold, sourced from London Bullion Market Association (LBMA) certified bars. This physical gold is held in segregated, insured vaults, creating a direct and verifiable link between the digital asset and its real-world counterpart. The collaboration leverages BlocPal's global financial ecosystem and VNX’s status as a regulated token generator in Liechtenstein to offer what the companies hope will be a new standard for trust and accessibility in digital gold.

A New Contender in the Digital Gold Rush

The launch of BPG1 arrives at a pivotal moment for both the precious metals and digital asset markets. With the price of gold surging past $4,000 per ounce in 2025—a 54% year-to-date gain outperforming many traditional and digital assets—investor appetite for a reliable store of value is palpable. This "debasement trade" has fueled a parallel boom in tokenized gold, with the market capitalization for such assets surpassing $3 billion. The number of crypto wallets holding tokenized gold has jumped over 50% in the last year alone, signaling a clear demand from digital-native investors seeking stability.

BPG1 enters a competitive field dominated by established players like Tether Gold (XAUT) and Paxos Gold (PAXG), which together command approximately 90% of the market. XAUT’s market cap recently soared to $2.1 billion, while PAXG, regulated by the New York State Department of Financial Services (NYDFS), maintains a strong position with a market cap over $1.1 billion.

Against this backdrop, BPG1 aims to differentiate itself not by scale alone, but through its foundational pillars: regulatory clarity and a novel distribution strategy. "BPG1 offers a secure digital asset combining the stability of physical gold with the accessibility of modern digital finance,” said Nick Mellios, Chief Executive Officer of BlocPal, in the announcement. The strategy is to build confidence through a regulated structure while simultaneously breaking down barriers to entry for everyday consumers.

Liechtenstein's Regulatory Stamp of Approval

A cornerstone of the BPG1 offering is its regulatory foundation in Liechtenstein. VNX Commodities AG operates as a licensed Trusted Technology (TT) Service Provider under the country's pioneering Token and Trusted Technology Service Provider Act (TVTG), commonly known as the "Blockchain Act." Enacted in 2020, the TVTG was one of the world's first comprehensive legal frameworks for the token economy, providing clear definitions for token ownership, transfer, and custody.

Under this act, the Liechtenstein Financial Market Authority (FMA) registers and supervises TT Service Providers like VNX, ensuring they adhere to stringent anti-money laundering (AML) and investor protection standards. For BPG1, this means the process of minting and burning tokens is tied directly to the audited movement of physical gold, all under the watch of a recognized European regulator.

"Our partnership with BlocPal reflects VNX’s collaborative approach to bring real-world assets on-chain," stated Alexander Tkachenko, Founder and CEO of VNX. "As the regulated Token Generator for BPG1, VNX ensures each token is transparently backed by physical gold under strict oversight."

This regulatory clarity is crucial for attracting both institutional capital and cautious retail investors. It provides a legal certainty that can be lacking in other parts of the digital asset space and aligns with the broader European push towards structured regulation, as seen with the Markets in Crypto-Assets (MiCAR) framework. By building on a legal model that influenced MiCAR, BPG1 is positioned to navigate the evolving global regulatory landscape with greater confidence.

From Institutional Vaults to Retail Wallets

While regulatory compliance builds trust, BlocPal's B2B2C distribution infrastructure is designed to deliver on the promise of accessibility. The company plans to make BPG1 available through a multi-channel network that extends far beyond typical crypto exchanges. This includes regulated OTC partners, precious metal dealers, and, most notably, a network of crypto ATMs and mini-ATMs.

This retail-first approach is a key differentiator. BlocPal has a proven track record in this area through its Indian subsidiary, Instant Mudra, which has built a network of over 50,000 retailers and processed more than $25 billion in transactions, primarily serving underbanked communities. The plan is to replicate this model in North America and other markets, transforming crypto ATMs from simple buy/sell points into gateways for acquiring regulated, asset-backed digital instruments like BPG1. This allows consumers to use familiar touchpoints, such as mobile apps and in-store terminals, to invest in gold.

For institutional and professional users, BlocPalX, the company’s decentralized digital asset exchange, will provide programmatic API access, enabling liquidity providers, distributors, and market makers to integrate BPG1 into their own offerings. This dual approach ensures deep liquidity for professional traders while creating simple on-ramps for retail participants, effectively bridging the worlds of institutional finance and Main Street investment.

The Mechanics of Trust and a Cross-Chain Future

The long-term viability of any asset-backed token rests on the integrity of its reserves. The BPG1 ecosystem is designed with multiple layers of verification. The one-to-one backing is maintained by VNX, which only mints new tokens after confirming that a corresponding troy ounce of LBMA-certified gold has been secured in a segregated, insured vault. Redemptions trigger a corresponding "burn" of tokens, ensuring the circulating supply never exceeds the physical reserves.

To further bolster confidence, VNX has committed to providing regular, independent audit reports confirming the gold reserves. This transparency is critical for overcoming the skepticism that has historically surrounded asset-backed digital currencies. Holders of BPG1 will have the flexibility to trade it like any other digital asset or redeem their tokens for physical gold, which can be delivered via insured shipping.

Initially launching on the Ethereum blockchain, the partnership has outlined a clear roadmap for multi-chain support, including plans to expand to Solana and other networks. Critically, this expansion will be managed through a controlled burn-and-mint mechanism, which avoids reliance on third-party bridges—a common point of failure and security risk in the DeFi space. This method ensures that the one-to-one gold reserve ratio is preserved immutably across all supported blockchains, maintaining the asset's integrity as it becomes accessible to a wider ecosystem of users and applications.