BioSig Technologies and Streamex Exchange Corporation have signed an agreement to secure $1.1 billion to support their pivot into the tokenization sector, starting with gold.
Total Financing Amount
According to the announcement, $100 million of the total funding will come in the form of convertible debentures, while the remaining $1 billion will be an equity line of credit. This funding aims to support the establishment of a business issuing tokenized financial instruments backed by gold.
New Companies' Approach to Gold Tokenization
Henry McPhie, CEO of BioSig and co-founder of Streamex, stated that the new company will take a 'slightly different' approach compared to Paxos and Tether. 'We aim to use our balance sheet capital to seed liquidity into creating gold and structured product gold-related tokens,' he noted.
Tokenized Commodities Market
Currently, the total market cap for tokenized commodities stands at $1.62 billion, representing 6.6% of the overall tokenization market valued at $24.5 billion. Paxos Gold and Tether Gold together account for 98.9% of the total market value of tokenized commodities.
BioSig and Streamex aim to carve a niche in the rapidly evolving tokenized commodities segment with a focus on gold, which may alter the current dynamics in this sector.
