Acting as Cayman Islands counsel for GLDY tokenised gold fund launch

Our Cayman Islands office acted as legal counsel to Streamex Corp. (Streamex) in connection with the launch of GLDY, a tokenised gold fund structured as a Cayman Islands exempted company and registered with the Cayman Islands Monetary Authority under Section 4 (1) (b) of the Mutual Funds Act (as amended).

GLDY offers investors tokenised exposure to physical gold—with each token corresponding to one troy ounce—together with a gold-denominated yield generated through a gold leasing programme. With a minimum aggregate equity interest of less than US$100,000, the fund's structure is designed to broaden access to gold investment for a wider range of eligible investors. The fund utilises blockchain infrastructure providers including Fireblocks, Base and Chainlink for data verification and reporting. Sumsub provides investor identity verification and anti-money laundering compliance services for the fund.

A key element of the engagement involved adapting the fund's constitutional and offering documents to accommodate smart contract functionality, blockchain infrastructure and digital wallet mechanics.  The project involved close collaboration with on-island expert service providers, including an experienced independent director from Leeward providing corporate governance expertise, Zedra providing fund administration and principal office services, and FundBank providing specialist banking services to the fund, ensuring robust oversight and operational integrity from inception. The involvement of established on-island service providers such as Leeward, Zedra and FundBank reflects the depth of specialist expertise available within the Cayman Islands for the structuring and administration of tokenised fund vehicles. 

The matter drew on the combined expertise of our Cayman Islands Investment Funds and Fintech practices, and our Regulatory & Risk Advisory team. Partners Martin Davies and Melissa Lim along with associate Miriam El Ofir led the project, with partner Lucy Frew and senior counsel Charlie Griffiths providing specialist regulatory advice. 

Martin shared: 'The convergence of blockchain technology and traditional asset management has given rise to a new generation of investment vehicles, of which GLDY is a significant example. A tokenised gold fund of this nature requires careful navigation of intersecting legal, regulatory and technological considerations. The Cayman Islands offers a well-established and flexible framework for structuring such vehicles, supported by a mature service provider ecosystem highly conversant with blockchain innovation. This would not be possible without the Cayman Islands Monetary Authority, whose forward-thinking regulatory clarity and proportionate supervisory approach have positioned the jurisdiction at the forefront of tokenised fund structuring. We were pleased to work with Streamex on this project.'

We acted alongside Chapman Cutler and Croke Fairchild Duarte & Beres, who provided US legal advice to the sponsor in connection with the offering.