Velocity Trade, Kilo Capital Execute First Trades on Abaxx Spot Gold Platform

First trades have been executed on the Abaxx Spot Gold Pool, with transactions completed between Velocity Trade and Kilo Capital, marking the initial activity on the physical gold trading platform developed by Abaxx. The trades represent the first use of the platform’s spot market infrastructure, which is designed to connect physical gold participants through a centralized venue based in Singapore.

Spot and Futures Integration

The Abaxx Spot platform operates alongside the group’s futures exchange, creating a structure where spot and derivatives markets are co-located within the same ecosystem. This setup is designed to support convergence between spot and futures pricing, particularly for physically deliverable contracts tied to gold trading in Asia.

The platform focuses on kilobar gold, a format widely used across Asian markets, and provides inventory management and trading functionality within a unified system. Participants include refiners, bullion dealers, banks, and other entities active in physical gold markets.

Market Access and Structure

Spencer Davey, Managing Director, APAC at Velocity Trade, commented, “Abaxx offers a compelling platform as the market evolves, particularly against the backdrop of broader efforts to position Singapore as a trusted gold hub. Velocity Trade looks forward to playing its part in these developments.”

Wade Brennan, Chief Executive Officer at Kilo Capital, commented, “Abaxx Spot provides an important new channel to transact with a broader universe of customers beyond our existing bilateral relationships in a single venue.”

The statements point to a shift away from fragmented trading relationships toward centralized access points for physical commodities. Historically, market fragmentation has required participants to manage multiple counterparties across regions when sourcing or trading physical gold.

Singapore’s Role in Gold Trading

The platform is based in Singapore, aligning with ongoing efforts to strengthen the city’s role in global gold trading. By combining spot and futures markets within one infrastructure, the system aims to support regional liquidity while connecting global participants to Asian demand.

The model introduces electronic execution and standardized processes to a segment of the market that has traditionally relied on over-the-counter transactions. This may affect how pricing, liquidity access, and settlement are managed in physical gold markets over time.

Broader Infrastructure Trends

The launch reflects a broader trend where exchange operators and technology firms expand into physical market infrastructure, linking trading, clearing, and settlement within integrated systems. For commodities such as gold, where physical delivery remains central, the integration of spot and derivatives markets can influence both liquidity distribution and price discovery.

The extent to which the platform gains traction will depend on participation levels and the ability to attract consistent trading flow from institutional participants. As new venues enter the market, competition may focus on execution efficiency, access to liquidity, and alignment with regional trading practices.