FundBridge Capital has launched a tokenised private credit fund designed to generate yield on gold, a first for the region, the asset manager announced in a statement today.
The MG999 On-Chain Gold Fund allows investors to gain exposure to the performance of the gold spot price without incurring the costs of vaulting, insurance, or physical storage.
The fund issues digital units on Libeara’s tokenisation platform, which currently supports over $1 billion in compliant on-chain assets. The units are structured to provide returns linked to both the gold spot price and yield from lending, effectively transforming gold from a traditionally “negative carry” asset into a productive instrument.
Singapore' Mustafa Gold, a subsidiary of the Mustafa Group, is the fund’s first borrower, tapping the structure to manage working capital needs.
“MG999 will enable gold retailers to capitalise on innovation in the digital space while managing working capital more efficiently,” Mustaq Ahmad, founder of the Mustafa Group, said in the announcement.
FundBridge said the fund combines traditional regulatory oversight with blockchain infrastructure to create a framework for regulated tokenised assets. Aaron Gwak, founder and CEO of Libeara, added that the platform provides Web3-compatible technology rails to help the industry transform gold into a yield-generating instrument.
