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Gold Reserve Standards & SBLC Monetization — April 2026

Gold standards, gold stablecoins,
and five ways to put the SBLC to work.

This page covers three connected topics: (1) the US equivalents of Canada's NI 43-101 mineral disclosure standard — with full definitions for institutional due diligence; (2) gold-wrapped stablecoins (PAXG, XAUT, CACHE) and how the SBLC is used to acquire them; and (3) every pathway available within the platform's capital stack to monetize or leverage the CIBC-issued MT-760 SBLC.

SEC S-K 1300
SME Guide
LBMA Good Delivery
PAXG (Paxos)
XAUT (Tether)
SBLC Discount
Centrifuge LTV
Maple Direct
SBLC Lease

Regulatory Standards

US equivalents of NI 43-101 — definitions and application

Canada's NI 43-101 (National Instrument 43-101 — Standards of Disclosure for Mineral Projects) is the world standard for certified mineral resource and reserve reporting. The US regulatory landscape has three analogues: SEC S-K 1300 (the statutory requirement for SEC filers), the SME Guide (the technical industry standard), and LBMA Good Delivery (the operational standard for vaulted gold — most directly relevant to DIGAU).

NI 43-101 vs. the platform context: NI 43-101 and S-K 1300 apply to mining property resource/reserve estimates. For DIGAU — where gold is purchased and vaulted (not mined) — the LBMA Good Delivery standard is the primary applicable certification. S-K 1300 becomes relevant if DIGAU ever claims backing from a producing mine property.
SEC S-K 1300PRIMARY
SEC Regulation S-K Subpart 1300
17 CFR §§ 229.1300–1305 — U.S. Securities and Exchange Commission
Effective: February 25, 2021
Replaces: SEC Industry Guide 7

The principal US federal standard governing disclosure of mineral properties by SEC-reporting companies. Adopted in 2020 and effective 2021, it replaced the outdated SEC Industry Guide 7. S-K 1300 aligns with CRIRSCO international standards — the same framework underpinning NI 43-101 — making it the closest US statutory equivalent.

Key definitions
Qualified Person (QP)
A mining or mineral industry professional with a minimum of five years of relevant work experience in mineral exploration, mine development, or operation; and/or in the estimation, assessment, and evaluation of mineral resources or mineral reserves. Must be a member of a recognized professional organization that has enforceable professional conduct standards and a disciplinary process.
Mineral Resource
A concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade, or quality, and quantity that there are reasonable prospects for eventual economic extraction. Divided into three sub-categories in order of increasing geological confidence: Inferred, Indicated, and Measured.
Mineral Reserve
The economically mineable part of a Measured or Indicated Mineral Resource, incorporating Modifying Factors. Divided into: Probable Mineral Reserve (from Indicated, sometimes Measured, resources with sufficient planning done) and Proven Mineral Reserve (from Measured resources where mining plan is fully defined).
Technical Report Summary (TRS)
Required disclosure document authored or co-authored and certified by a QP. Must accompany any SEC filing that includes a first-time or materially updated mineral resource or reserve estimate. The TRS is the US regulatory equivalent of the NI 43-101 Technical Report.
Modifying Factors
Considerations used to convert Mineral Resources to Mineral Reserves — including mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social, and governmental factors.
Preliminary Feasibility Study (PFS)
A comprehensive study of the viability of a mineral project that meets a lower confidence threshold than a Feasibility Study. Mineral reserves can be declared under a PFS if there are no reasonable alternatives to the mining method and processing route selected.
Feasibility Study
The highest standard of study. Comprehensive technical and economic assessment of a mine using realistic assumptions. Required for Proven Mineral Reserve declarations. Equivalent to the "bankable feasibility study" used in financing contexts.
How it applies to DIGAU: For a digital gold security that claims backing by gold reserves derived from a mining property, the issuer must engage a QP to certify resource/reserve estimates under S-K 1300. The TRS must be filed with any SEC registration statement or periodic report that makes material claims about the gold reserve position.
SME GuideSECONDARY — Technical Industry Standard
SME Guide for Reporting Exploration Results, Mineral Resources, and Mineral Reserves
Society for Mining, Metallurgy & Exploration (SME) — 2014 Edition — Society for Mining, Metallurgy & Exploration (SME)
Effective: 2014 (latest revision); updates ongoing
Replaces: N/A — industry technical guideline, not a regulatory requirement

The SME Guide is the principal US technical industry standard for reporting mineral exploration results, resources, and reserves. It is not an SEC requirement but is widely used by US-based mining companies, private issuers, and project financiers. It is CRIRSCO-compliant and consistent with both NI 43-101 and SEC S-K 1300. Qualified Persons operating in the US most commonly rely on the SME Guide as their professional framework.

Key definitions
Competent Person / Qualified Person
An individual with relevant education, experience in the type of deposit under report, and membership in a recognized professional organization. The SME definition mirrors the NI 43-101 QP definition and the S-K 1300 QP definition.
Mineral Resource Categories
SME uses the same three-tier classification: Inferred (least confidence, based on limited data), Indicated (reasonable continuity assumed, sufficient for preliminary economic studies), Measured (highest confidence, detailed drill/sample data, continuity established).
Mineral Reserve Categories
Probable Mineral Reserve (from Indicated, with Modifying Factors applied) and Proven Mineral Reserve (from Measured, Modifying Factors fully evaluated). These match S-K 1300 and NI 43-101 definitions exactly.
Exploration Results
Data and information generated by exploration programs that may be used in estimating mineral resources. Not sufficient on their own to declare a resource. Must be accompanied by geological context and qualified assessment.
How it applies to DIGAU: A QP advising on the DIGAU gold reserve certificate would typically follow the SME Guide for the technical assessment, with the resulting disclosure filed under SEC S-K 1300 format for any SEC-registered offering. Private offerings (Reg D) may reference SME standards in the offering memorandum without SEC filing.
LBMA Good DeliveryPRIMARY for vaulted / purchased gold (most relevant for DIGAU)
LBMA Good Delivery Rules for Gold and Silver Bars
London Bullion Market Association — Current Edition (2024) — London Bullion Market Association (LBMA)
Effective: Ongoing; current rules effective January 2024
Replaces: N/A — operational standard for vaulted physical gold

For a digital gold security backed by purchased, vaulted gold bars (rather than mined gold still in the ground), the LBMA Good Delivery standard is the primary certification benchmark — not NI 43-101 or S-K 1300 (those apply to mining property reserve estimates). Any gold bar held in custody backing DIGAU tokens must meet LBMA Good Delivery specifications. This is the standard that PAXG, XAUT, and every major institutional gold product uses.

Key definitions
Good Delivery Bar
A gold bar meeting LBMA specifications: minimum 350 troy oz, maximum 430 troy oz; minimum fineness 995.0 parts per thousand fine gold; must be assayed and hallmarked by an LBMA-accredited refiner; must bear the mark of the refiner, assay office, serial number, fineness, and year of manufacture.
LBMA-Accredited Refiner
A refiner approved by the LBMA to produce Good Delivery bars. Currently ~72 accredited gold refiners globally, including Rand Refinery (SA), Perth Mint (AU), Royal Canadian Mint, Heraeus (DE), PAMP Suisse (CH), and Metalor (CH). Bars from non-accredited refiners are not Good Delivery.
Allocated vs Unallocated
Allocated gold: specific identified bars held in custody on behalf of a single owner — the owner has legal title to those specific bars. Unallocated gold: a claim on a pool of gold held by a bank — the owner is an unsecured creditor, not a bar owner. DIGAU and all institutional digital gold products require Allocated custody.
Chain of Integrity
Requirement that Good Delivery bars remain in LBMA-approved vaults to retain their Good Delivery status. If a bar leaves the approved vault network, it must be re-assayed before re-entering. Chain of Integrity is maintained through continuous custody at LBMA-approved vaults (Brink's London, HSBC London, JPMorgan London, ICBC Standard London, Malca-Amit).
Independent Audit / Attestation
Physical vault audit by an LBMA-approved independent auditor (typically a Big 4 accounting firm) who physically inspects and reconciles bar serial numbers against custody records. Required at minimum annually; major institutional products (PAXG, SPDR Gold Shares) audit quarterly.
How it applies to DIGAU: Every gold bar backing DIGAU tokens must be: (a) a Good Delivery bar from an LBMA-accredited refiner, (b) held in an LBMA-approved allocated vault, (c) independently audited quarterly, and (d) a vault receipt issued recording specific bar serial numbers. The vault receipt SHA-256 hash is then anchored on-chain via ReserveProofAnchor.sol. This is the same standard used by PAXG (Paxos Gold) — the most regulated gold stablecoin.
Industry Guide 7LEGACY — superseded; cited for historical context
SEC Industry Guide 7 — Description of Property by Issuers Engaged or to Be Engaged in Significant Mining Operations
Securities Act Release No. 6349 (1982) — U.S. Securities and Exchange Commission
Effective: Originally 1982; superseded by S-K 1300 effective February 2021
Replaces: Superseded — for historical and cross-reference only

SEC Industry Guide 7 governed SEC mining property disclosure for nearly 40 years. It used older, narrower "proven and probable reserves" definitions that did not align with CRIRSCO or NI 43-101. It permitted no disclosure of resources below the reserve level. Replaced by S-K 1300 in 2021. Still referenced in older deal documents and filings. For all new offerings, S-K 1300 applies.

Key definitions
Proven Reserve (Guide 7)
The part of a mineral deposit which could be extracted or produced economically and legally at the time of the reserve determination — supported by detailed data to confirm quantity, grade, and quality, with reasonable engineering assumptions. Equivalent roughly to S-K 1300 Proven Mineral Reserve.
Probable Reserve (Guide 7)
Reserves for which quantity and grade are computed from information similar to proven reserve data, but with less detail or continuity. Equivalent roughly to S-K 1300 Probable Mineral Reserve.
How it applies to DIGAU: Legacy reference only. Any DIGAU-related disclosure or offering document should reference S-K 1300 (for SEC filings) or LBMA Good Delivery (for vaulted gold). Do not rely on Guide 7 for new structural work.

Gold-Backed Digital Assets

Gold-wrapped stablecoins — comparison & acquisition via SBLC

Gold-wrapped stablecoins are ERC-20 (or equivalent) tokens where each token is backed by a fixed weight of physical gold held in an LBMA-approved vault. They allow the platform to hold gold exposure on-chain — verifiable, liquid, and directly integrable with the DIGAU smart contract stack. The SBLC can be used to acquire these tokens via any of the monetization pathways below.

PAXGPaxos GoldRECOMMENDED
Paxos Trust Company, LLC — New York, USA — Regulated by: NYDFS (New York Department of Financial Services)
1 PAXG = 1 troy oz fine gold (LBMA Good Delivery)
Chains: Ethereum (ERC-20), Solana
Custody: Brink's vaults, London — LBMA Good Delivery allocated gold bars
Audit: Monthly independent attestation; quarterly physical bar inspection
Liquidity: Very high — Kraken, Binance, Gemini, Coinbase, Paxos direct
OTC Minimum: $100,000 USD equivalent for Paxos institutional desk
Fee Structure: 0.02% on-chain transfer fee; no custody fees; creation/redemption free
›Most institutionally regulated gold token — NYDFS licensed trust company.
›ERC-20 on Ethereum — fully compatible with DIGAU infrastructure on Base (Ethereum-equivalent EVM).
›Each PAXG can be converted to a physical gold bar at Paxos's vault (minimum 430 oz).
›Fractional ownership: 0.01 PAXG minimum on-chain; no minimum for secondary market purchase.
›Paxos holds gold in segregated allocated accounts — PAXG holders are NOT unsecured creditors.
›Whitelist not required for ERC-20 transfer — liquid on secondary market without issuer involvement.
XAUTTether Gold
TG Commodities Limited (Tether subsidiary) — British Virgin Islands — Regulated by: None equivalent to NYDFS — BVI entity, less regulated than PAXG
1 XAUT = 1 troy oz fine gold (LBMA Good Delivery)
Chains: Ethereum (ERC-20), Tron (TRC-20)
Custody: Swiss vaults — specific custodian disclosed on Tether's verification page
Audit: Quarterly attestation by BDO Italia
Liquidity: High — Bitfinex, OKX, KuCoin; thinner than PAXG
OTC Minimum: Via Bitfinex institutional; no public minimum stated
Fee Structure: No stated on-chain fee; creation/redemption fees apply
›Second largest gold stablecoin by market cap.
›Less institutional trust than PAXG — BVI entity, no NYDFS equivalent oversight.
›ERC-20 compatible — integrates with same infrastructure.
›Bar identifier and vault details queryable on Tether's gold verification page.
›Used mainly in non-US institutional contexts; for US Reg D investors PAXG is preferable.
CACHECACHE Gold
CACHE Gold Pte. Ltd. — Singapore — Regulated by: MAS (Monetary Authority of Singapore)
1 CGT = 1 gram of 99.99% fine gold
Chains: Ethereum (ERC-20)
Custody: Singapore and Switzerland — LBMA accredited (Malca-Amit)
Audit: Daily cryptographic proof via on-chain oracle; quarterly physical audit
Liquidity: Lower — specialized exchanges only
OTC Minimum: Contact CACHE directly
Fee Structure: 0.05 CGT per 100 CGT per month custody fee
›Gram-denominated (not troy oz) — useful for fractional reserve calculation.
›On-chain oracle provides real-time gold backing data — strongest transparency.
›Lower liquidity than PAXG/XAUT — suitable for reserve holding, not active trading.
›MAS regulated — Singapore framework; compatible with Australian (CBA channel) institutional investors.
PAXG acquisition pathways — using the SBLC
Each pathway shows how the SBLC or SBLC-backed facility is used to acquire PAXG within the system.
Acquisition Method
Days
Liquidity Source
Gold Received
Notes
Centrifuge → USDC → Paxos OTC
2–4
SBLC LTV 70–80%
PAXG on-chain
Best path: preserves cash, SBLC remains active, PAXG in smart contract vault
SBLC Discount → USD wire → Paxos OTC
7–15
30–50% of SBLC face
PAXG on-chain
Cash-out path: SBLC consumed; higher yield from full LTV vs. 30–50% discount
SBLC → Bullion Dealer → Physical Gold
3–7
100% of SBLC face
Physical LBMA bars in vault
Primary reserve pathway: SBLC fully drawn, physical gold in vault, vault receipt on-chain
Maple → USDC → Paxos OTC
14–28
SBLC as collateral
PAXG on-chain
Longer setup; use only if Centrifuge pool not yet live
CIBC/CBA proceeds → Paxos OTC
1–2
Offering capital
PAXG on-chain
Post-close path: simplest; USD wire from CIBC escrow to Paxos, PAXG minted

SBLC Monetization

Five ways to monetize the SBLC within the system

The CIBC MT-760 SBLC is not a passive document — it is a financial instrument with multiple activation paths. Each path below has different cash-out rates, timelines, and implications for whether the SBLC can simultaneously serve as reserve proof. Choose the path that matches the operational need.

PATH 01CASH OUT — 30-50% of face value
SBLC Discount / Monetization via Trade Finance Desk
Timeline: 5–15 business days from submission to proceeds receipt

The SBLC is presented to a prime bank trade finance desk or approved SBLC monetization facility. The bank discounts the instrument at a percentage of face value (typically 30–50% for MT-760 instruments from rated prime banks) and issues a bank wire for the net proceeds. The SBLC holder receives cash; the bank holds the SBLC until expiry or draws it if not repaid.

Step-by-step
01Obtain the CIBC-issued MT-760 SBLC (irrevocable, unconditional, assigned to the monetizing party).
02Submit to an approved trade finance desk: CIBC itself, Deutsche Bank Trade Finance, Société Générale, or a specialized trade finance intermediary on the approved counterparty list.
03Bank performs due diligence: issuing bank rating, SBLC wording review, UN sanctions screening.
04Discount rate negotiated: typically 30–50% of face value for a 12-month MT-760 instrument.
05Bank issues a bank-to-bank MT-103 (wire) for the discounted proceeds to the platform's CIBC Bank USA account.
06Cash proceeds available: deploy toward gold procurement, PAXG purchase, or operational capital.
07At SBLC expiry: if instrument not drawn, it lapses and bank's hold is released.
In the system: Monetization proceeds wired to CIBC Bank USA escrow → (a) purchase PAXG via Paxos institutional OTC desk, or (b) fund operational costs, or (c) acquire physical gold via LBMA bullion dealer.
Key risk: Discount rate (30–50%) means cash-out is at a significant haircut. Only appropriate if full SBLC draw is not required for reserve proof purposes simultaneously.
PATH 02BORROW 70-80% LTV — DAI / USDC on-chain
SBLC as Centrifuge RWA Collateral (Layer 03)
Timeline: 2–4 weeks to set up pool; draws available same day pool is funded

The SBLC is tokenised as a Non-Fungible Token (NFT) representing the real-world asset on the Centrifuge protocol. A lending pool (senior DROP tranche / junior TIN tranche) is created on-chain. Liquidity providers deposit DAI or USDC into the senior tranche and earn yield. The issuer draws against the pool up to 70–80% of the SBLC face value. This is the Centrifuge pathway already in Layer 03 of the Capital Stack.

Step-by-step
01Create Centrifuge issuer account and complete KYB verification.
02Structure the pool: set maximum pool size, advance rate (70–80%), DROP token yield (5–8% APY), lock-up terms.
03Tokenise the SBLC: upload instrument details, face value, expiry, CIBC bank details, and relevant hash as Centrifuge Asset NFT metadata.
04Pool goes live on-chain: liquidity providers can deposit USDC/DAI into the DROP tranche.
05Draw request: issuer submits on-chain draw request; DROP liquidity deployed to issuer wallet (DAI or USDC).
06Repayment: at first offering close, proceeds wired → converted to USDC → repaid to Centrifuge pool.
07Pool closes: DROP holders redeemed, TIN (issuer first-loss position) returned, SBLC NFT burned.
In the system: DAI/USDC drawn from Centrifuge → (a) convert to USD via Circle/Coinbase → buy PAXG via Paxos OTC, or (b) hold as USDC and purchase PAXG on-chain via Uniswap/Curve ETH → PAXG pool.
Key risk: Centrifuge pool requires minimum pool size ($1M+ practical minimum). Smart contract risk (audited by Trail of Bits + SRLabs). Repayment on time is critical — default triggers SBLC draw clause.
PATH 03GOLD IN — MT-760 → Physical Delivery
SBLC Direct to Gold Supplier — Physical Gold Procurement
Timeline: 3–7 business days from SBLC issuance to gold delivery

The SBLC MT-760 is issued directly from CIBC to an LBMA-accredited gold bullion dealer (e.g., APMEX OTC Gold, ScotiaMocatta, MKS Pamp, Heraeus) as the payment instrument. The gold supplier ships LBMA Good Delivery bars to the designated custodian vault (Brink's, Malca-Amit). Gold is delivered against the SBLC — the supplier draws the SBLC only upon confirmed vault receipt. No cash changes hands until gold is physically in custody.

Step-by-step
01Select LBMA-accredited bullion dealer willing to accept SBLC as payment (MKS Pamp, Heraeus, APMEX institutional desk).
02Negotiate gold purchase agreement: quantity (troy oz), spot price + spread, delivery date, custodian vault address.
03CIBC issues MT-760 SBLC in favor of the bullion dealer — wording includes draw trigger: "payable upon presentation of vault receipt issued by [Brink's/Malca-Amit] confirming delivery of [X] troy oz Good Delivery gold bars, serial numbers [list]."
04Bullion dealer ships gold bars to custodian vault.
05Custodian issues vault receipt: bar serial numbers, fineness, total troy oz, date of deposit.
06Bullion dealer presents vault receipt to CIBC — SBLC is drawn (payment released to dealer).
07Custodian holds allocated gold in DIGAU's name. Vault receipt hash anchored on-chain.
In the system: Physical gold in vault → vault receipt → on-chain anchor via ReserveProofAnchor.sol → DIGAU tokens minted against verified gold reserve. This is the primary gold procurement pathway in the Reserve Proof layer.
Key risk: SBLC is fully drawn upon gold delivery — no residual monetization value once this pathway executes. Gold price risk during delivery window (typically managed by forward purchase agreement).
PATH 04BORROW INSTITUTIONAL — 6-18 month term
SBLC-Backed Institutional Credit Line (Maple Finance)
Timeline: 2–4 weeks for credit assessment and facility execution

The SBLC documentation (instrument copy, CIBC confirmation, offering memorandum) is presented to a Maple Finance Pool Delegate as collateral for a Maple Direct institutional lending facility. Unlike Centrifuge (on-chain pool), Maple Direct involves a bilateral credit agreement assessed by a specialist Pool Delegate who approves the facility off-chain, then executes on-chain. Proceeds are in USDC.

Step-by-step
01Prepare Maple Direct loan application: SBLC copy, offering memorandum, audited financials (if available), use-of-proceeds breakdown.
02Submit to Maple's institutional underwriting team (maple.finance/institutional).
03Pool Delegate conducts credit assessment: CIBC bank rating, SBLC wording, issuer track record.
04Facility terms negotiated: USDC principal, fixed rate, 6–18 month term, SBLC + token pledge as collateral.
05On-chain execution: loan agreement executed as Maple smart contract; USDC disbursed to issuer wallet.
06USDC deployed: platform costs, legal fees, custodian onboarding, PAXG acquisition.
07Repayment: from offering close proceeds (USD → USDC via Circle).
In the system: USDC from Maple → convert to USD via Coinbase Institutional → CIBC account → (a) operating costs, or (b) purchase PAXG via Paxos institutional desk. Alternatively hold USDC and purchase PAXG on-chain.
Key risk: Maple Direct requires issuer to be an established entity with track record. Rate is institutional but not subsidized. Default triggers collateral enforcement — SBLC draw by Maple/Pool Delegate.
PATH 05LEASE — Earn fee; retain SBLC for reserve
SBLC Lease for Working Capital (Yield Without Full Draw)
Timeline: Ongoing; annual lease fee collection

Rather than discounting or drawing the SBLC, the instrument can be leased to a third-party trade finance counterparty who uses it as collateral for their own transaction. The SBLC holder receives a lease fee (typically 1–4% annually of face value). The SBLC remains in the holder's name; it is not drawn. This allows the SBLC to continue serving as the reserve proof anchor while generating income.

Step-by-step
01Identify approved SBLC leasing counterparty: a regulated trade finance house or prime bank with established SBLC leasing programme.
02Execute SBLC lease agreement: lease fee (1–4% p.a.), lease term, permitted use of instrument by lessee.
03SBLC remains in issuer's name and continues to serve as reserve backing for DIGAU.
04Lease fee paid quarterly via bank wire to CIBC account.
05At lease expiry: lessee returns instrument rights; issuer retains full face-value SBLC.
In the system: Lease fee income deposited to CIBC Bank USA → deployed to Ondo OUSG for yield, or used for platform operating costs. SBLC simultaneously serves reserve proof role.
Key risk: Lease arrangement must be fully disclosed in offering documents. Lessee default risk. Permissibility of leasing while using SBLC as reserve must be confirmed with CIBC Trade Finance desk and offering legal counsel.

Downloadable documentation

The following documents are available in the Downloads library under the Gold Standards & Stablecoin category. Each covers a specific aspect of the gold reserve certification process, SBLC monetization, or gold-wrapped stablecoin integration.

SEC S-K 1300 Mineral Disclosure GuideREGULATORY
Full QP definitions, TRS requirements, and comparison to NI 43-101
LBMA Good Delivery Standard — Digital Gold OverviewCORE DOC
Bar specifications, Chain of Integrity, custody requirements, attestation process
PAXG Integration Guide — Paxos InstitutionalINTEGRATION
OTC desk onboarding, creation/redemption via wire, ERC-20 custody setup
SBLC Discount & Monetization ProcedureWORKFLOW
Step-by-step: prime bank submission, discount rate negotiation, proceeds disbursement
SBLC → Centrifuge RWA Pool (PAXG Pathway)PROTOCOL
Pool creation, SBLC tokenization, DAI draw → PAXG purchase on-chain
NI 43-101 vs S-K 1300 vs LBMA — Comparison MatrixANALYSIS
Side-by-side: what each standard requires, when it applies, how to use it for DIGAU
→ View all gold standards & stablecoin documents in the Downloads library
RESERVE PROOF & SBLCCAPITAL FORMATION STACKDOWNLOAD DOCUMENTSSETTLEMENT RAILSCONTACT TEAM

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