Basic Concepts
Q: What exactly is BGOLD? How is it different from Gold ETFs or paper gold?
A: BGOLD is a digital ownership certificate of physical gold. Each BGOLD represents 1 gram of LBMA-standard gold bars purchased by the Singapore-licensed precious metals dealer Haobao and stored in the Malca-Amit vault.
The core differences from traditional gold investment products are:
| Comparison Dimension | Gold ETF / Paper Gold | BGOLD |
| Ownership Nature | Claim against a fund company or bank | Direct ownership of physical gold |
| Reserve Transparency | Depends on periodic institutional disclosures | Verifiable on-chain with audit report hash records |
| Physical Redemption | Usually not supported | Supported (starting from 5 kg, redeemable at offline store) |
| Trading Hours | Limited to exchange trading hours | 24/7 global transfers with near-instant settlement |
| Asset Utility | Only for trading | Can pay Gas fees, and may support lending/yield in the future |
Product Comparison
Q: How is BGOLD different from other digital gold tokens on the market (such as XAUT or PAXG)?
A:
BGOLD’s core differentiator lies in its complete "issuance–circulation–redemption"闭环. While other digital gold tokens (such as XAUT/PAXG) also support physical redemption, BGOLD sets itself apart in four key dimensions:
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Lower Barrier, Accessible to Everyone
Other projects impose redemption thresholds starting from hundreds of thousands of dollars. BGOLD sets a moderate threshold of 5kg (~160 oz), making physical gold accessible to far more users. -
No KYC, Privacy by Default
From purchase to redemption, BGOLD requires no identity verification. Redeem physical gold simply with an on-chain burn—true to the decentralized spirit. -
Transparent Net Value, What You See Is What You Get
Powered by a unique dual-account model, your wallet displays the net gold weight after fees. The 0.8% management fee is deducted second by second—no hidden charges, full transparency. -
True On-Chain Utility, Beyond Just Holding
BGOLD can be used directly to pay Gas fees and is deeply integrated with the DeFi ecosystem—transforming gold from a "dormant asset" into "yield-bearing capital."
Q: What is the difference between BGOLD and directly buying physical gold bars?
A: When you buy physical gold bars directly, you must store them yourself, which involves risks and costs such as theft, wear, authentication, and storage. It is also difficult to divide and quickly liquidate. BGOLD is custodied by professional institutions and fully insured. By paying a small management fee, you avoid all storage concerns while enjoying the benefits of digital assets such as no purchase limits, global instant transfers, and on-chain payments. When you need physical gold, you can redeem it at the Singapore store once you accumulate 5 kg.
Purchasing and Holding
Q: Is there a minimum purchase requirement for BGOLD? How do I buy it?
A: There is no minimum purchase requirement. You can buy any amount, such as 0.1g, 1g, or 100g.
Purchase process (using the BenPay App as an example):
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Deposit: Transfer USDT / USDC / BUSD into your BenPay wallet
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Swap: Enter the BGOLD trading page and input the amount you want to purchase
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Confirm: The system displays a real-time locked price based on multiple oracle feeds
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Receive: The smart contract executes automatically, and BGOLD is credited instantly
The entire process typically takes only a few minutes, with no manual intervention.
Q: When I buy BGOLD, who am I actually trading with?
A: You are trading with market makers. Market makers purchase BGOLD in bulk from the issuer Haobao and provide liquidity in BenPay Swap. The BenPay platform only provides the trading venue and on-chain settlement, and does not handle your funds or tokens, ensuring transparent trading and avoiding conflicts of interest.
Q: How is the price of BGOLD determined? Will it be much more expensive than international gold prices?
A: BGOLD prices are pegged to the real-time spot price of London and New York gold markets, with price data fed by multiple decentralized oracles. Market makers add a reasonable bid–ask spread on top of the benchmark price (similar to currency exchange services). The spread is transparent and constrained by market competition. As more market makers join in the future, spreads are expected to become even narrower, ensuring BGOLD prices remain close to global gold prices.
Physical Gold Redemption
Q: If I want to redeem BGOLD for real gold bars, what is the minimum amount and how does it work?
A: The minimum redemption threshold is 5 kilograms (5,000 BGOLD).
Redemption process:
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Submit Request in App: On the BGOLD asset page, click “Redeem” and enter an amount ≥ 5 kg. The corresponding tokens will be locked and burned by the smart contract (visible on-chain).
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Information Confirmation: Complete identity verification and confirm the redemption appointment time.
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Offline Pickup: Visit the designated Haobao Singapore store to collect the LBMA standard gold bars after on-site verification.
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On-chain Status Update: Once the delivery is completed, the confirmation signal is returned on-chain, completing the process.
The entire process usually takes 5–10 business days and may involve reasonable minting or insurance fees.
Q: If I don’t reach 5 kg, does that mean I’ll never see physical gold?
A: You have two options:
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Sell anytime on Swap for liquidity (more suitable for investment purposes)
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Continue accumulating until you reach 5 kg and then redeem
In reality, most users do not need physical gold delivery. BGOLD’s on-chain liquidity, payment capability, and future DeFi use cases represent its core value. Physical redemption exists as the ultimate guarantee for users who truly require physical gold settlement.
Security and Trust
Q: Who stores the gold backing BGOLD? Is it really safe?
A: The physical gold is purchased by the Singapore-licensed precious metals dealer Haobao and stored in the Malca-Amit international vault, one of the world’s leading professional vault providers.
Malca-Amit vaults are used by central banks and London bullion market participants, featuring military-grade security, 24/7 monitoring, and full insurance coverage.
Haobao itself does not directly handle the gold, ensuring a separation of responsibilities between procurement, custody, and auditing, maximizing asset security.
Q: How can I verify at any time that the gold in the vault matches the token supply?
A: You can independently verify this in three steps:
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Check the audit: The official website regularly publishes third-party audit reports listing bar serial numbers, weight, and storage location.
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Check on-chain data: Use the BenFen Chain block explorer to check the total BGOLD token supply.
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Compare the two: The total physical gold weight in the audit report must equal the total on-chain token supply (1:1).
All data is public and open for verification at any time.
Q: If an extreme situation occurs (such as the issuer encountering problems), are my BGOLD rights legally protected?
A: Yes. BGOLD protects user rights through legal asset segregation.
The physical gold backing BGOLD is held through an SPV (Special Purpose Vehicle) structure, ensuring that its legal ownership is separate from the operational assets of Haobao and BenPay, achieving bankruptcy isolation.
Additionally, the project operates within the Singapore legal framework, providing clear legal documentation to protect token holders’ rights.
The physical gold stored in Malca-Amit vaults is fully covered by property insurance, safeguarding against risks such as fire, theft, and natural disasters. In the event that the gold is damaged due to extreme circumstances, the insurance provider will provide compensation in accordance with the policy terms.
Fees and Mechanisms
Q: How is the BGOLD management fee deducted? How do I know how much has been deducted?
A: BGOLD uses a dual-account model. The BGOLD balance displayed in your wallet already reflects the net gold weight after management fees.
The smart contract automatically accrues a 0.8% annual management fee per second, smoothly adjusting the internal exchange rate.
Example: If you purchase 100 grams of BGOLD today, after one year (assuming the gold price remains unchanged), your wallet balance will show approximately 99.2 grams.
The 0.8-gram reduction represents the annual management fee, deducted gradually on a daily basis. No manual calculation is required—what you see is what you own.
Q: Besides the management fee, what other fees are involved?
A: The main fees include:
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Trading Fee: 0.1% when buying or selling BGOLD via Swap
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Cross-Chain Deposit Fee: Gas fees charged by cross-chain bridges when transferring assets from other chains
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Redemption Fee: Possible minting and insurance fees when redeeming physical gold bars (displayed on the redemption page)
Future Roadmap
Q: What DeFi applications will BGOLD support in the future?
A: Upcoming features include:
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Collateralized Lending: Use BGOLD as collateral to borrow stablecoins while retaining exposure to gold price appreciation
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Liquidity Provision: Provide liquidity for BGOLD trading pairs on DEXs to earn trading fees
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Yield Protocols: Deposit BGOLD into yield protocols to earn interest
Q: Can BGOLD be transferred to other chains like Ethereum?
A: Currently, BGOLD primarily operates on the BenFen Chain, benefiting from low gas fees and the ability to pay gas with gold.
In the future, BGOLD will support secure cross-chain transfers via the native BenFen cross-chain bridge, allowing it to move to major public blockchains such as Ethereum and integrate with broader DeFi ecosystems.
Q: Will there be more RWA assets in the future? Can gold from different issuers be mutually recognized?
A: Yes. The RWA standard supporting BGOLD is designed as a scalable framework.
In the future, it may expand to assets such as government bonds, real estate income rights, and private credit.
At the same time, we are working on an issuer mutual-recognition mechanism, allowing gold tokens issued by different institutions to eventually be redeemed at each other’s stores, enabling the vision of “globally transferable and locally redeemable” gold assets.