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UAE: 'Digital gold' investment from as low as $1? Company announces fractional ownership

The firm launched ORO token, each of which represents one ounce of 99.99 per cent fine gold, securely stored with blue-chip custodians and fully insured

Published: Wed 25 Dec 2024, 6:00 AM

Updated: Wed 25 Dec 2024, 9:19 PM

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Image used for illustrative purpose. Photo: File

Image used for illustrative purpose. Photo: File

Digital asset platform Fasset said it launched ORO token which allows UAE investors to invest in smaller and more affordable increments of digital gold.

The company said UAE residents can invest from as low as $1 and also earn higher returns than the normal market.

ORO is the first application built on its Ethereum Layer 2 network, Own, in partnership with The Own Foundation.

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“The minimum investment to buy ORO tokens is as low as $1, significantly lowering the barrier to entry for gold ownership. This allows users to own gold by purchasing only a small portion of it for a low price. Each ORO token represents one ounce of 99.99 per cent fine gold, securely stored with blue-chip custodians and fully insured,” Daniel Ahmed, chief operating officer and co-founder of Fasset and Own, told Khaleej Times.

The company said tokens can be redeemed for physical gold in increments starting at $85 or exchanged for USDC. They can be redeemed after a one-day lock-in period. For staked tokens, the lock-in period may vary, but the firm plans future pools to enable nearly instant trading.

ORO tokens offer fractional gold ownership and investors will have early access slated for the first quarter of 2025, the company said, adding that it plans $1 billion worth of yield-bearing gold to be tokenised within the first year.

“With digital gold, people can buy in smaller increments at a lower price and redeem their tokens for fiat or USDC anytime, anywhere. This makes it much easier to access and manage compared to traditional gold,” added Ahmed.

Ahmed claimed that digital gold allows users to earn from yellow metal’s historical appreciation but also through staking ORO’s token on the platform, which offers an additional three to four per cent annual percentage yield.

He assured that ORO ensures full 1:1 backing of its tokens with physical gold, verified by monthly third-party attestations. All gold reserves are stored with industry-leading custodians like Brinks, fully insured, and independently audited.

Fasset said it has raised $26.7 million in funding and holds regulatory approvals in several countries, including the UAE, Indonesia, Malaysia, the EU, Turkey, Pakistan, and others, for offering tokenised assets.

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