In a significant development for both the traditional gold market and the digital asset space, a new tokenized gold fund has launched in Singapore, aiming to solve two distinct financial challenges at once. The MG 999 On-Chain Gold Fund, launched by FundBridge Capital in partnership with the Standard Chartered-backed tokenization platform Libeara and retailer Mustafa Gold, represents a novel fusion of investment product and credit facility.
A Dual-Purpose Financial Instrument
The MG 999 fund is engineered with a unique two-layer value proposition. For professional and institutional investors, it offers a streamlined, cost-efficient way to gain exposure to the spot price of gold. By using blockchain technology to issue tokens that track gold’s market performance synthetically, the fund removes the logistical burdens and costs associated with physical vaulting, storage, and insurance. This creates a regulated, digital alternative to holding bullion directly or through traditional funds.
Simultaneously, the fund incorporates a private credit mechanism designed to inject liquidity into the gold retail sector. Mustafa Gold, a major Singaporean retailer, is the facility’s first borrower. This structure allows businesses to use their in-store jewelry inventory as collateral to secure working capital loans without having to remove physical items from display or sell stock. As Mustaq Ahmad, founder of the Mustafa Group, explained, this innovation helps retailers “better manage working capital needs” by unlocking the value of otherwise static assets.
Market Context and Regulatory Foundation
This launch taps into powerful concurrent trends. Globally, demand for gold as a safe-haven asset remains strong, driven by geopolitical uncertainty and institutional diversification efforts. Concurrently, the tokenization of real-world assets (RWAs) is accelerating as major financial institutions seek to bring traditional finance onto the blockchain for greater efficiency and transparency. Libeara, the technology provider for this fund, is already supporting over $1 billion in tokenized assets, signaling strong institutional appetite for such products.
Singapore provides the ideal regulatory foundation for this experiment. The city-state has established itself as a progressive hub for digital asset innovation, with authorities actively piloting tokenized instruments. The fund is structured as a regulated vehicle, emphasizing compliance to meet the standards of institutional investors. Sue Lynn Lim, CEO of FundBridge Capital, stated their priority is to “bridge traditional fund governance with emerging digital infrastructure,” ensuring robust oversight within an innovative framework.
Paving the Way for Productive Assets
The broader vision behind MG 999 extends beyond a single fund. Aaron Gwak, founder and CEO of Libeara, framed the mission clearly: “We are providing Web3-compatible technology rails to help the industry transform gold into a productive instrument”. The goal is to move gold from being a passive store of value to an active, income-generating component of the financial system.
For the jewelry sector, this model promises a revolution in inventory financing. For investors, it offers a new, efficient channel for gold exposure coupled with the potential yield from the embedded credit facility. As traditional finance continues to explore blockchain, hybrid products like MG 999 that solve tangible economic problems are likely to become benchmarks, demonstrating how tokenization can create liquidity and opportunity in long-established markets.
