XAUm collateralized loan is now live on the Matrixport app. This guide shows XAUm holders how to unlock liquidity efficiently, what to watch out for, and how to get started step by step to make the most of your XAUm assets.
Why Use XAUm for Collateralized Lending?
XAUm is a tokenized gold issued by Matrixdock, backed 1:1 by physical gold that is 100% LBMA-certified and stored in top-tier vaults managed by Brink’s and Malca Amit. It undergoes regular audits to ensure transparency ( and accountability). Physical redemption is currently available in select offline locations, including Singapore and Hong Kong.
Collateralized loan with XAUm provides investors with a fast and flexible way to access liquidity. By pledging XAUm on Matrixport, holders can borrow USDT or USDC to ease short-term funding needs. The current loan-to-value (LTV) ratio is 80%.
How XAUm Collateralized Loan Works in Practice
Consider an investor holding $10,000 worth of XAUm as a long-term hedge against market volatility and inflation. When a new investment opportunity arises, they can pledge the XAUm as collateral and borrow USDT or USDC, without having to liquidate their tokenized gold assets. At maturity, they repay the principal and interest to reclaim their XAUm, optimizing capital efficiency while maintaining gold exposure.
Step-by-Step on How to Use XUAM Collateralized Loan
1. Download and log in to the Matrixport app. Please ensure that you’ve completed KYC Level 2 to access our loan services.
2. Tap More Products on the homepage and select Loan.
Alternatively, go to Gold → XAUm →More → Loan to directly access the XAUm lending page.
2. Select XAUm as the collateral asset. Then choose your preferred loan currency under Borrow Currency. Matrixport offers XAUm fixed loan products with various terms—select the one that best suits your needs.
3. For example, under USDC – 7 Days, enter the amount you want to borrow. The system will automatically calculate the required amount of XAUm to be pledged, based on an 80% loan-to-value (LTV) ratio. Repayment, including principal and interest, is due at maturity.
4. Review the risk warning and Collateralized loan agreement. Once confirmed, click Submit. Your loan will be disbursed to your wallet balance upon approval.
5. At maturity, go to My Orders in the lending section, select the relevant order, and tap Repay to settle the principal and interest.
Notes
- Please note that if Auto Top-Up is disabled, you’ll need to manually add collateral to reduce your loan-to-value (LTV) ratio.
- If your XAUm-backed position reaches an LTV of 85%, Matrixport will send a risk alert via email, SMS, and in-app notifications, prompting you to add more collateral.
- You can navigate to the My Orders section, select the relevant loan, and click Top Up to manually add collateral. Your LTV ratio will update automatically after the top-up. You may also enable Auto Top-Up at this point.
Disclaimer: The above content does not constitute investment advice, a solicitation, or an offer to buy or sell for residents of the Hong Kong Special Administrative Region, the United States, Singapore, or any other jurisdiction where such offers or solicitations are prohibited by law. Digital asset trading involves significant risks and volatility. Investment decisions should be made with careful consideration of your circumstances and, where appropriate, after consulting a qualified financial advisor. Matrixport shall not be held responsible for any investment decisions made based on the information provided herein.