Blue Gold CEO Andrew Cavaghan told investors at RedChip’s FinTech and Digital Asset Treasury Strategies Virtual Investor Conference that the company recently listed on Nasdaq and is pursuing a vertically integrated “mine-to-wallet” strategy built around tokenized, physically backed gold.
Vertically integrated model built around tokenized gold
Cavaghan described Blue Gold as a “vertically integrated gold business” with three operating areas: physical gold mining and trading, tokenization of gold on blockchain rails, and a FinTech platform intended to let customers spend gold through card payments or direct settlements.
Backing, vaulting, and token structure
A key point of the presentation was that tokens are designed to be one-to-one backed by allocated physical gold, not “paper gold.” Cavaghan said each token corresponds to one gram of gold, and that token holders are associated with specific physical bars via bar numbers. He said the backing gold consists of kilo bars with 999% or 999.5% purity that are certified good-delivery bars.
He also highlighted the custody and issuance structure:
- Tokens are issued by a Wyoming Digital Asset Statutory Trust, which Cavaghan said is intended to provide a supportive U.S. legal framework for digital assets.
- The underlying gold is vaulted in the UAE, which he called a safe jurisdiction for storage.
- Blue Gold is working with Brink’s as a vaulting partner and said Brink’s footprint could ultimately support redemption in many locations.
- The token is built on Base, which Cavaghan said makes it accessible to Coinbase as an exchange.
Cavaghan argued that lower-cost blockchain settlement could address pain points associated with international payments, referencing delays and costs in legacy payment systems.
Market opportunity and product use cases
Cavaghan framed the company’s strategy around two themes: inflation concerns in major fiat currencies and the practical difficulties of using physical gold (storage, insurance, transport, and trust). He said gold’s portability and usability challenges have limited its role as everyday money even as it has remained a store of wealth.
He cited an estimate of roughly $12 trillion of above-ground gold and said less than 1% has been tokenized, describing that as an adoption gap. He also cited forecasts for tokenized assets growing to $10 trillion from $118 billion in 2024, arguing that tokenized gold could represent a fast-growing subset of that broader trend.
In terms of functionality, Cavaghan said customers would be able to buy tokens on a phone, exchange them on-chain, spend via a connected debit or credit card with conversion back to fiat at point of sale, or redeem for physical gold through vaulting outlets.
Competition and differentiation
Cavaghan identified two large competitors in tokenized gold: Pax Gold (PAXG) and Tether Gold (XAUT). He said Blue Gold’s differentiation includes its status as a publicly listed issuer, which he argued brings reporting requirements and regulatory oversight for officers and directors. He also emphasized planned third-party verification, saying the company is working with a Big Four auditor to verify gold holdings against the token ledger and publish attestations.
On token design, he said the company’s one-gram denomination is intended to be a more usable unit than one-ounce tokens, which he characterized as a higher denomination for everyday use.
Mining asset, trading, and financial disclosures cited
While much of the update focused on the digital product, Cavaghan also discussed the company’s mining exposure. He said he was calling from West Africa and that Blue Gold is in negotiations with the government of Ghana to resolve a lease dispute involving the Bogoso Prestea Gold Mine. He described the asset as having a 5.1 million-ounce measured and indicated resource, a 14-year life of mine, and potential production of 250,000 ounces per year.
To support token demand while not producing gold itself “at the minute,” Cavaghan said the company secured 1 million ounces of gold supply from a dedicated trading partner based in the UAE. He also described a trading strategy of sourcing gold with “good provenance” at a discount to spot and selling for a margin.
On monetization, he outlined multiple revenue lines: fees when tokens are initially purchased (“on-ramped”), small fees when tokens change hands, FinTech-related revenue from services provided to token holders, and trading income.
Cavaghan repeatedly referenced coverage from Zacks Small-Cap Research, saying the firm published a report and assigned a $20 per share target for the digital side of the business, with additional upside attributed to the mine in the same report. He also said the company has lines of credit in place and that $65 million is escrowed for the restart of the mine.
He added that the company’s capitalization included about 35 million shares outstanding, with potential additional shares associated with warrant exercises and other instruments he discussed.
During the Q&A, Cavaghan began answering a question about what makes now the right moment to digitize gold at scale, citing blockchain maturity and shifting U.S. legislative attitudes toward digital assets, including reference to the “GENIUS Act.” However, the session ended abruptly after Cavaghan lost connection due to a reported power outage in Ghana, and the remaining questions were not addressed.
About Bellevue Gold (ASX:BGL)
Gold producer at Bellevue Gold Project, Western Australia
