Valereum PLC chief executive Gary Cottle joined Proactive earlier this week to talk about the launch of VGOLD, a tokenised gold product designed to generate yield.
Cottle said the offering aims to differentiate in a crowded market by combining gold exposure with income and enhanced liquidity.
He outlined the strategy behind VGOLD, its partnership model, and the company’s path towards revenue growth and a potential US listing.
Proactive: Gary, very good to speak with you. You've announced the launch of VGOLD. What makes this product stand out in the growing tokenized gold market?
Gary Cottle: Thanks for having me on again. I guess the main thing, it's probably the only gold token that will pay a yield, or a coupon. And it will be significant. So, for those people that stake their tokens longer than a year, that would probably be between 10% and 15%. So it is a digital gold token, but it's also one that pays a significant yield.
Proactive: You're receiving parts of the coupon in VGOLD-CORE tokens. How should investors think about the value and liquidity of these assets?
Gary Cottle: Well, they'll be very liquid, because they'll be fungible into cash and Tether gold and other assets. Part of the appeal is swapping what is a bond that we have at the moment. Aligning it to VGOLD will allow us to invest it on similar terms, and also swap and use it for other things. It's more versatile, more flexible, and the coupon is higher. We need to complete a modification process and ensure all underlying assets are independently verified, which we expect to do soon.
Proactive: How significant is the partnership with Quorium in scaling your real-world asset tokenization platform?
Gary Cottle: They've been fundamental in helping us build VGOLD. It's a joint collaboration. They developed VGOLD-CORE, and we developed VGOLD together. We're aligning technology and discussing deeper collaboration, including revenue sharing. It helps solve issues around deal origination and value attribution, while bringing together complementary strengths and assets.
Proactive: With a US listing flagged as the next milestone, what progress are you making and how important is that for future growth?
Gary Cottle: It's critical and a main objective. We've completed much of the preparatory work, but we need to close trades to demonstrate stable revenues. We currently have six or seven deals in the pipeline. A US listing depends on building a business with consistent transactions. VGOLD is our most direct path to generating revenues, alongside other tokenized deals including real estate.
Proactive: Sounds like you have lots of irons in the fire.