A Metalayer Capital
strategy backed by an initial institutional allocation uses GLDY as the long
leg of a delta-neutral gold trade, creating a new channel for demand for
Streamex’s yield-bearing tokenized gold, with follow-on investments
anticipated.
Streamex Corp., a
Nasdaq-listed a technology company building the future of the commodity markets
through tokenization, has secured a commitment of institutional capital, a test
of whether tokenized commodities can draw buyers beyond individual investors.
A leading
institutional investor has made an initial $1 million allocation, with
follow-on investments anticipated, to a relative-value strategy that uses GLDY,
Streamex’s gold-backed token, as its long gold position, according to a person
with knowledge of the matter who isn’t authorized to speak on behalf of the
company. The strategy is run by
Metalayer Capital, a systematic investment manager, through its Aureon
Relative Value Fund, the person said.
Metalayer Capital was founded by former Two Sigma executives. Metalayer
Capital declined to comment.
The strategy pairs
GLDY with an offsetting short position in gold-linked perpetual futures, so it
is designed to be largely indifferent to whether gold prices rise or fall, the
person said. It aims instead to earn the yield GLDY pays, which
Streamex targets at 3.5% a year in additional gold generated through a
gold-leasing program.
For Streamex, the
significance lies in the mechanics: money deployed into the long position goes
into GLDY, adding to the assets under management on which the company earns
fees.
The initial allocation
of $1 million is final, with follow-on investments anticipated, and its
significance lies in who is buying: it suggests that tokenized securities such
as GLDY are drawing interest not only from accredited individual investors but
also from the institutional investor community.
In August,
Streamex laid out a list of goals for the following 90 days. “Converting
the first institutional allocations into GLDY was at the top of that list,”
said Henry McPhie, the company’s co-founder and chief executive. He called the
arrangement “a fundamentally different growth channel than selling to one
investor at a time.”
Beyond the initial $1
million, the rest of the commitment remain at the purview of the investor, and
there is no assurance that any additional amount of GLDY will be bought.
The companies have
other ties. Metalayer also acts as a liquidity provider for GLDY on certain
trading venues and can mint and redeem the token directly with the issuer, the
person said. Streamex doesn’t manage or sponsor the fund and isn’t compensated
based on money the fund raises.
GLDY is offered only
to eligible investors under exemptions from securities registration, and its
holders to date have largely been accredited investors seeking yield. Streamex
has made
six consecutive monthly distributions on the token, most recently in September,
and publishes its gold reserves through a
Chainlink proof-of-reserves feed.
This article was written by IL Contributors at investinglive.com.