From Mint to Metal: How AuResources Utility Tokens Unlock Real Gold Ownership

What You’ll Learn in This Post

1. What AuResources Utility Tokens actually represent

2. How Swiss bailment law governs your relationship with the gold

3. The full lifecycle of a token: from minting to physical delivery

4. Why this isn’t a speculative bet, but a custody and delivery framework

5. How this model compares to custodial ETFs or synthetic gold tokens
   
   

1. What Are AuResources Utility Tokens?

Utility Tokens issued by AuResources AG are not securities. They’re access tokens that give holders the right to receive refined gold at a future date, once the metal has been sourced, extracted, and processed.

Each token is tied to a specific project—such as the Kokoyon concession in Mali—with a defined maturity schedule. Upon maturity, token holders can choose to:

• Convert to a refined token (AURG)

• Take physical delivery (subject to minimums and fees)

• Use the token as collateral to borrow AuUSD (our stablecoin)

Borrowing AuUSD against holdings is available to token holders immediately, before maturity. This is a key feature, which we discuss in more detail in our post Gold as Collateral.

This model is anchored in Swiss law and clearly defined in our Terms of Service.

Analogy: Think of the token like a claim ticket for a piece of gold that’s being manufactured. You hold the legal rights to it now, and when it’s ready, you decide how to collect it.

2. The Bailment Agreement: A Legal Structure Older Than Blockchain

When you acquire Utility Tokens through the AuResources platform, you’re entering into a bailment agreement. It’s a legal construct where:

• You (the Bailor) remain the rightful owner of the gold the token represents.

• AuResources AG (the Bailee) is responsible for securing, refining, or managing that gold on your behalf.

• Sub-Bailees (miners, refiners, or vault operators) may be appointed to help fulfill the process.

Unlike staking or pooled custody, you never lose ownership of the underlying metal. The token represents your beneficial claim, enforced under Swiss law.

Analogy: It’s like checking your coat at a secure venue. You’re handing it over temporarily, but it’s still yours. You get a claim ticket (token), and when you’re ready, you pick it up—or have it delivered.

3. From Mint to Metal: The Token Lifecycle

Here’s how the process works from start to finish:

Minting

• You acquire Utility Tokens through the AuResources dApp.

• These tokens are linked to pre-defined gold projects with known reserves and production timelines.

Bailment in Effect

• Your tokens immediately fall under the terms of the bailment agreement.

• AuResources sources, refines, and prepares the gold linked to the tokens.

Maturity

• Maturity dates vary (e.g., 2027–2029), depending on the project.

• Once gold is refined and vaulted, your tokens become eligible for conversion or delivery.

Redemption Options

• Convert to AURG (refined gold token)

• Request delivery of physical gold (minimum: 10,000 tokens; KYC required; $5,000 fee)

• Use the tokens as collateral to borrow AuUSD (covered in our next blog)

This entire process is non-custodial and transparent. You keep control of your wallet and private keys at every stage.

4. Delivery Mechanics: Yes, You Can Get Real Gold

We don’t just promise delivery—we’ve designed it into the token from the beginning.

Delivery conditions:

• Minimum of 10,000 matured tokens

• KYC verification

• $5,000 delivery fee per lot

• Government-issued ID required for collection

• No third-party proxies

If the original supplier can’t fulfill delivery, AuResources will source the gold from alternative, vetted suppliers. That’s a delivery guarantee, not just a best effort.