> For the complete documentation index, see [llms.txt](https://docs.ontorium.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ontorium.io/ontorium-stack-overview/asset-layer/backing-structure.md).

# Backing Structure

OXAU is a gold-backed digital asset issued on-chain by Ontorium. Each OXAU token represents exactly 1 gram of physical gold, held in custody by an independent, regulated third-party custodian in secure vaulting facilities.

**1 OXAU = 1 gram of physical gold**

The minimum unit for minting and redemption is 1,000 OXAU, equivalent to 1 kilogram of gold.

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#### **How the Backing Works**

When a user mints OXAU, the equivalent amount of physical gold is allocated and held in custody on behalf of the token holder. The gold is segregated and held in secure vaulting facilities. OXAU tokens in circulation are fully backed by physical gold at all times on a 1:1 gram basis.

When a user redeems OXAU, the corresponding gold is released from custody in accordance with applicable redemption terms. For physical gold redemption inquiries, please contact <contact@ontorium.io>.

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#### **Why Physical Gold?**

Gold has served as a store of value for thousands of years and remains one of the most widely recognized and liquid real-world assets globally. Key characteristics that make gold suitable as a backing asset include:

* Globally recognized store of value with deep liquidity
* Historically resilient against inflation and currency devaluation
* Tangible, scarce, and independently verifiable asset
* Widely accepted as collateral in traditional financial markets

By anchoring OXAU to physical gold, Ontorium connects on-chain financial activity to one of the most trusted real-world assets.

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#### **Custody Arrangement**

Physical gold underlying OXAU is held by an independent, regulated third-party custodian in secure vaulting facilities. The custody structure is designed to ensure that gold backing OXAU is:

* Held in segregated, secure vaulting facilities
* Independently managed from Ontorium's operational activities
* Subject to ongoing verification processes