Gold programme · Plan · Draft of 9 October 2026
One stock of gold, counted once, under two tokens.
This is the plan for how Krysos is to buy, store and hold gold, and what that gold would back: bars stored for customers, XAUMD for gold itself, and a USDMD reserve that holds XAUMD. It is published as a plan. What is decided, what is proposed and what is still open are marked throughout.
A plan, not a product
Nothing on this page is open for business. No fee, rate, return or date is set, and none is published here until it is. Proposals are marked as proposals. Every legal point is to be confirmed by counsel.
Can gold stored for a customer back the tokens?
Only if its owner converts it
A stored bar backs nothing but its owner's account. It becomes XAUMD's reserve only when the owner turns it into XAUMD.
Can XAUMD back USDMD?
In layers: recommended, not decided
Bars back XAUMD one for one. USDMD's reserve would hold XAUMD tokens. Each bar is counted once.
One shared reserve for both tokens?
No
Each token keeps its own, legally separate reserve. The same bar never counts twice.
Four pools, each bar in exactly one
Every bar carries a refiner mark, a serial number and a fine weight. Each serial is to appear on exactly one pool's bar list, and the auditor is to certify that.
The rule everything rests on
Customer gold becomes reserve only by an explicit act of its owner. Counting stored customer bars as backing for anyone else's tokens is the double-pledge pattern behind the Qingdao (2014) and Kingold (2020) frauds. It is never done here.
Customer storage
- Holds
- Customers' bars, by account and bar list
- Legal owner
- The customer; Krysos and the vault are custodians
- Backs
- Nothing but that customer's account. Never a reserve
- Lent or pledged
- Never
XAUMD trust
- Holds
- Bars on a serial-numbered list, by fine weight
- Legal owner
- An independent trustee, on trust for all XAUMD holders
- Backs
- Every XAUMD in existence, including XAUMD held by the USDMD reserve
- Lent or pledged
- Never
USDMD reserve
- Holds
- XAUMD tokens, the hedge's profit or loss, and issuer capital
- Legal owner
- The USDMD issuer, ring-fenced for USDMD holders
- Backs
- USDMD supply
- Lent or pledged
- Never. Hedge margin is issuer capital outside the reserve
Dealer stock
- Holds
- Bars the Singapore company holds for sale
- Legal owner
- The Singapore bullion company
- Backs
- Nothing, until sold into storage or the trust
- Lent or pledged
- Financed and hedged by the dealer; counted nowhere
Shared across the pools
- The vault operator and the custody contract
- The auditor and the count events
- One insurance programme, scheduled per pool
- The sourcing desk and the proof-of-reserves engine
Separate for each pool
- Its legal owner and its custody accounts
- Its bar list, with each serial in exactly one
- Its attestation lines and its holders' claims
- Its insurance loss payees and its issuer
The alternative is fully separate pools, with bars held directly for the USDMD issuer. Cleaner if a regulator dislikes an affiliate token as the main reserve asset, but it doubles the bar lists and the intake, and USDMD's gold is then visible only through custodian reports. The specification recommends the layered design. The choice is open.
How gold moves between pools
Each move is an act of the gold's owner.
Buy and store
The customer passes identity checks and pays the Singapore bullion company. Bars move from dealer stock into the customer's storage account, by serial number, and title passes. The invoice lists weight, fineness, refiner and serial.
Tokenise
The customer instructs a conversion. The bars move from storage into the trust by book entry, the trustee confirms them on the trust's list, and the XAUMD issuer mints the bars' certified fine weight in grams, less a fee. The customer then owns a share of the pool, not specific bars.
Buy XAUMD with money
The bullion company sells bars from its stock into the trust, and XAUMD is minted after intake.
Sell XAUMD for USDMD
The holder sends XAUMD to the USDMD controller. The reserve takes it, the hedge adds a matching short, and USDMD is minted at the oracle price less the fee, only while the collateral ratio is at or above its floor. This is a sale of gold.
Redeem USDMD
Burn USDMD and receive XAUMD at the oracle price less the fee. The hedge shrinks to match.
Redeem XAUMD for bars
Burn the delivered bar's own fine weight plus fees. The trustee moves that bar from the trust into the holder's storage account, or the bullion company delivers it. A 100 g tier is planned from launch, beside whole kilobars.
Withdraw or deliver
Leaving the bonded zone needs a customs permit. Exports are zero-rated. Handling and delivery charges are passed through and published before the service opens.
Sell back
The customer sells stored bars to the bullion company at its published bid.
Bars customers bring in from outside never enter the trust; the bullion company buys them back for re-refining instead. And USDMD gives no access to a customer's gold: converting XAUMD to USDMD is a sale of gold for a dollar claim.
XAUMD, the gold layer
The token for gold itself. Its own page has the design in full and what runs on testnet today; the points that matter to this plan are these.
- One token is one gram of fine gold. A bar mints its certified fine weight, so a 999.9 kilobar mints about 999.9 tokens, never 1,000.
- Intake before mint. The trustee confirms a bar on the trust's list before the issuer mints; mint and burn need both; a reconciliation break pauses minting by itself.
- Delivery in small lots. A 100 g tier from launch, from a separate small-bar inventory, beside whole kilobars.
- No holding fee. One token stays one fine gram. The trust's running costs are pre-funded, or met by a disclosed custody fee charged to the USDMD reserve; which is open.
- Only bars from refiners on the current LBMA Good Delivery list, delivered direct by an approved carrier with a certificate of analysis.
USDMD on XAUMD
USDMD's reserve is the value of its gold, plus the hedge's profit or loss, plus issuer capital. The collateral ratio is that reserve divided by supply: the target is 1.08, and minting pauses below 1.02. In the layered design the gold is XAUMD held on chain, so the contracts can read it.
- Growth is bounded by capital. A mint arrives at a ratio of about 1.00, so the buffer above it is issuer capital: about eight cents for every dollar at the target.
- Growth is bounded by hedge capacity. A short that dominates a venue pushes funding down or negative; the specification limits the reserve's share of any venue's open interest.
- The hedge is never dropped. Negative funding is answered by the buffer, capital calls and mint pauses, not by removing the short.
- Hedge income builds the buffer first. Only value above a ratio of 1.12 is swept to the treasury, in on-chain gold. None of it goes to holders.
- A limited mainnet may start on PAXG or XAUT as its gold, and switch to XAUMD after two clean monthly attestations of the bar pool.
Who holds what, and where
| Entity | Where | Does | Never does |
|---|---|---|---|
| Singapore bullion company | Singapore | Sells, stores and delivers bars; runs storage accounts and dealer stock; delivery agent for physical redemptions | Anything with tokens |
| XAUMD issuer | A special purpose company outside Singapore, the United States and the European Union | Mints and burns XAUMD after the trustee's confirmation | Holds bars itself |
| XAUMD trustee | An independent, licensed trust company | Holds title to the trust's bars for all holders; contracts with the vault for them | Lends or pledges trust bars |
| USDMD issuer | A separate special purpose company, offshore | Owns the USDMD reserve; runs the controller, the hedge and the buffer | Pays interest; drops the hedge |
| Earn entity (optional, later) | Separately licensed | Opt-in products for accredited and institutional investors, taking first loss | Touches customer storage, the trust or the reserve |
- Vault: Singapore, an LBMA-grade operator chosen by tender and not owned by the Krysos group. A second site later, with no single location holding more than 60%.
- Distribution: the Midas exchange and Predikon distribute the tokens, and Pactol hosts the hedge today. All three are related parties and are disclosed as such.
- Where USDMD is not offered: not to United States persons, not in the European Union, not marketed in Hong Kong, not in the United Arab Emirates, and not marketed to retail in Singapore. The storage service may serve Singapore residents.
- Singapore's regulator has consulted (P015-2026, September 2026) on treating gold-referenced tokens as digital payment tokens. That bears on XAUMD's structure, which counsel must settle before it launches.
Proof of reserves
On chain, every epoch
- XAUMD: fine weight in the trust at or above XAUMD supply on every chain
- USDMD: the value of its XAUMD, plus the hedge's profit or loss, plus the buffer, at or above the ratio times supply
- XAUMD held by the USDMD reserve at or below XAUMD supply
- Each customer's bar list reconciles to the storage ledger
- No serial appears in more than one pool
Off chain
- A monthly accountant's attestation covering bars, hedge and margin
- A bar-by-bar count by an independent inspector twice a year, plus one unannounced count
- An annual audit of each issuing company
- Attestation hashes written on chain
On-chain proof proves only the bar list it is fed. The physical counts are what stand behind it.
Fees and costs
No fee is set. These are the lines that would exist. Each is published on this site before the service that charges it opens.
- A spread on bars bought and sold back
- A storage fee, by tier: pooled allocated lower, segregated kilobars higher
- A fee to tokenise bars, and to mint or redeem XAUMD
- Handling and delivery charges, passed through
- USDMD mint and redeem: 0.10% on testnet today, on its own fees page
Fixed costs come first: vault fees, specie insurance, counts, the attestation, a compliance officer, the trustee and counsel. A break-even model for each phase is to be published before the XAUMD phase, and XAUMD carries no holding fee at any point.
Phases and their gates
The order of the specification. No date is set for any phase.
- 0Running
Testnet
USDMD on Midas Chain testnet with MockXAU and a Pactol short; a test XAUMD since 8 October 2026. Counsel's opinions, a vault tender, auditor and inspector quotes and entity formation begin here. No customer money.
- 1SNext
Singapore storage service
The bullion company buys, sells and stores bars for customers. No tokens. May run alongside Phase 1.
GateRegistration as a regulated dealer; a Commodity Trading Act licence or exemption; a vault contract with a three-party control agreement; insurance.
- 1Next
USDMD limited mainnet
Gold is PAXG or XAUT on chain. An offshore issuer and geofence. Supply capped by capital and hedge capacity. A written wind-down plan; a monthly attestation from the first month.
GateCounsel's opinions; the hedge option chosen; a capital plan; an external audit.
- 2Later
XAUMD on mainnet
Trustee and issuer in place. Fine-gram minting, intake before mint, the 100 g tier from launch, monthly attestations, the first bar-by-bar count. Running costs funded; a lien waiver from the vault.
GateCounsel on XAUMD's structure; a trustee appointed; a break-even model.
- 3Later
USDMD switches to XAUMD
USDMD's gold moves from PAXG or XAUT to XAUMD. The earlier reserve assets wind down.
GateTwo clean monthly attestations of the bar pool.
- 4Later
Scale
Caps raised. A second vault and custodian, with no location above 60%.
GatePhase 3 running clean for an agreed period.
Proposals under consideration
Three proposals from 9 October 2026, none decided. They are published so that what is being weighed is visible, not because any is promised.
Gold by default, as XAUMD
Every buyer who may hold the token would receive XAUMD at purchase. The storage account would remain for Singapore retail, until counsel settles XAUMD's status there, and for institutions that want whole bars segregated in their name. Both sit in the same vault, so moving between them is a book entry. The bullion desk's standing bid would be one exit of four, beside on-chain transfer, delivery, and sale to the USDMD controller; never the only one.
USDMD vaults: borrow dollars, keep the gold
A holder would lock XAUMD and draw USDMD against it, keep the gold's upside, and pay a fee while the loan is open. USDMD drawn this way is backed by the borrower's own over-collateral, not by the hedge and not by issuer capital. Guards: a maximum draw well below the collateral's value; liquidation before a worst-week fall in gold reaches the debt; a ceiling on the share of supply such loans may be; liquidators in order, an open auction, then the bullion desk at its bid, then the junior tranche below. If adopted, every setting is published before the first vault opens. Whether such a vault is lending that needs a licence is a question for counsel, and it would run from the offshore issuer under USDMD's own geofence.
Reserve Backers: a junior tranche with lock-ups
Investors would lock XAUMD for a fixed term into USDMD's reserve as first-loss capital. It would count toward the buffer after a haircut sized to gold's worst week, earn a share of the fees the reserve actually collects, and take losses before any USDMD holder. It would be an investment product: for accredited and institutional investors only, in a separate, separately licensed entity. No rate is published, and none will be advertised.
No interest on XAUMD or USDMD
Gold earns nothing. A fixed return on it has two possible sources: lending the bars, which breaks the one-for-one backing, or paying it from the issuer's pocket, which is the pattern behind Singapore's Genneva fraud convictions. Neither token pays interest, yield or balance-based rewards, and no return is marketed as expected or guaranteed.
Decisions still open
The owner decides these. Each is published here when made, and not before.
- Reserve architecture: layered, or fully separate bar pools
- Launch order: the storage service and XAUMD's legal work first, with USDMD's limited mainnet on PAXG or XAUT in parallel
- XAUMD's mainnet unit: one gram of fine gold, or the troy ounce
- The vault operator and site, chosen by tender
- The issuing jurisdictions for XAUMD and USDMD
- Storage pricing by tier, and the bar spread
- XAUMD's running costs: pre-funded, or a disclosed custody fee from the USDMD reserve
- The mainnet hedge: a capped margin sleeve on outside venues, gold forwards, or Pactol alone with a lower cap
- The three proposals above: gold by default, vaults, backers
- Whether Krysos responds to Singapore's consultation on gold-referenced tokens
What is never done
- Count stored customer bars toward any reserve, buffer or yield product
- Publish one shared reserve for both tokens, or let a serial appear on two bar lists
- Lend, lease, pledge or rehypothecate any bar, or write options on them
- Pay interest on USDMD or XAUMD, or market any return as expected
- Tell customers that USDMD gives them access to their gold
- Incorporate the token issuers in Singapore, or run the token business from there
- Use a vault operator owned by the group
Legal questions outstanding
- How Singapore classifies XAUMD, and whether the bullion company needs a Commodity Trading Act licence or an exemption
- Whether a trust over a serial-numbered bar list survives the insolvency of the issuer, the trustee and the vault operator
- The issuing jurisdictions, and whether a token nobody can freeze is lawful there
- Whether a USDMD vault is lending that needs a licence, and the tax treatment of a draw
- Whether backer notes are securities, and which accredited-investor exemptions apply
- Scope outside Singapore: the United States, the European Union, the Emirates and Japan
Nothing on these pages is an offer, a solicitation or a recommendation to buy, sell or hold any asset, in any jurisdiction. No MIDS has been minted, test USDMD and test XAUMD have no value, and none of the three is on a mainnet.