BlocPal International Inc. and VNX Commodities AG have teamed up to launch BPG1, a gold-backed digital token designed to merge the stability of physical gold with the accessibility of blockchain finance. Each BPG1 token is fully backed by one troy ounce of 99.5% fine gold, stored in segregated, insured vaults and sourced from LBMA-certified bars.
Under a regulated framework, VNX acts as the Token Generator, minting new BPG1 tokens only after physical gold is secured in Tier 1 vaults and burning tokens when redemptions occur. This ensures a strict 1:1 relationship between circulating tokens and underlying gold, allowing holders to trade or redeem tokens for physical delivery through insured logistics.
BPG1 leverages BlocPal’s B2B2C infrastructure, connecting regulated institutions, retail partners, digital platforms, and its expanding mini-ATM network. The token will be available via exchanges, OTC partners, participating retailers, precious metal dealers, and mobile apps, making gold-backed finance accessible to both institutional and retail investors.
BlocPalX, BlocPal’s decentralized exchange platform, will provide institutional users with API-based market access, enabling liquidity providers and distributors to integrate BPG1 into trading and retail channels efficiently.
“BPG1 combines the stability of gold with the speed and accessibility of digital finance,” said Nick Mellios, CEO of BlocPal. “Our regulated partnership with VNX ensures each token represents a physical gold ounce, providing transparency and trust for both professional and retail users.”
Alexander Tkachenko, CEO of VNX, added, “BPG1 demonstrates how real-world assets can go on-chain under strict oversight. Coupled with BlocPal’s distribution capabilities, the token reaches investors securely and compliantly.”
Initially issued on Ethereum, BPG1 will later support Solana and other blockchains. To maintain cross-chain gold backing, BlocPal and VNX use a controlled burn-and-mint mechanism, avoiding third-party bridges and preserving the one-to-one gold reserve ratio across networks.
