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IllustrativeTokenization

Field scenario

How to Tokenize Gold: A Gold Savings Token Scenario

A dealer issues a token backed one-to-one by allocated gold, with holder approval and clawback switched on from day one.

Who: A regional bullion dealer. An invented composite, not a customer; the numbers are example inputs, not results.

The problem

Turning a vault of gold bars into a token people can save in

Customers want to save small amounts in gold, but the dealer can only sell whole bars or coins, and storage plus insurance make small holdings uneconomic.

The dealer also has to prove, regularly and publicly, that what it sold is actually in the vault.

The setup

What is in place before the first transaction

  • Asset definition

    One token equals one gram of allocated gold at a named vault. The dealer is the issuer and publishes the vault audit schedule.

  • Controls

    Holder approval is on, so only customers who passed the dealer's checks can hold the token. Freeze and clawback are on for court orders and lost-key recovery.

  • Supply discipline

    New tokens are minted only against new bars entering the vault, and burned when a customer redeems for physical metal.

How it runs

The flow, step by step

  1. 1

    Step 1

    A customer passes the dealer's identity checks and is approved as a holder.
  2. 2

    Step 2

    They buy grams with USDG; the dealer mints against vault inventory and sends the tokens.
  3. 3

    Step 3

    Anyone can compare total supply on the explorer with the latest vault report.
  4. 4

    Step 4

    To redeem, the customer sends tokens back and collects metal; those tokens are burned.

Risks

What to watch

  • The token is only as good as the vault and the auditor. On-chain supply proves what was issued, not what is stored.
  • Approval lists must be maintained: a customer who fails a later check can be frozen, and the reason recorded off-chain.
  • Gleo's issuance contracts are not deployed yet. Today this whole flow can be rehearsed in the Tokenize console in practice mode.

Try it

Gleo tools used in this scenario

Tokenize console (practice)Gleo for tokenization

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