Blue Gold adds a US$15 million gold trading facility with DL Hudson Dunes, expanding into proprietary trading.
Blue Gold Limited has expanded its partnership with commodity trader DL Hudson Dunes (UAE) to include a US$15 million gold trading facility, enabling the company to undertake proprietary gold trades alongside its existing tokenisation activities.
The facility will be used to acquire gold from mines and licensed aggregators globally, leveraging Blue Gold’s network in the sector. The company is targeting two to three trades per month with projected profit margins of between 1 per cent and 5 per cent per trade. DL Hudson Dunes will also act as a partner on each transaction, contributing legal, compliance, and commercial expertise.
Blue Gold CEO Andrew Cavaghan said, “Our relationship with DL Hudson Dunes enables us to create two distinct revenue streams and value drivers for our shareholders.”
The first stream, gold tokenisation, alllows Blue Gold to earn up to 3% in on-ramp fees when creating and selling gold-backed tokens, alongside ongoing transaction fees of around 0.02% each time a token changes hands. According to Cavaghan, the previously announced 1 million ounce gold supply agreement with DL Hudson Dunes gives capacity to create approximately US$4.2 billion of tokenised gold at current prices.
The second stream is proprietary trading, where Blue Gold intends to capture additional margin by acquiring gold at a discount from long-term licensed producers, using the new US$15 million facility to support between US$30 million and US$45 million in monthly trades.
Cavaghan added: “Overall, our business is focused on capturing margin at each stage of the gold production, tokenisation and spending lifecycle, to create a blend of high-quality recurring revenue and higher margin transactional activities.”
Blue Gold plans to move further upstream into mining, including the anticipated restart of the Bogoso and Prestea mine once a lease dispute is resolved, and through potential acquisitions in West Africa and Latin America. The company is also working on a fintech wallet targeted for launch in Q3 2026, which will allow holders of its Standard Gold Coin to spend tokens via the “One App” and branded payment cards.
Stay updated on the crypto space by following our socials
