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.
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