Dhan Launches Gold Vault for Exchange-Traded Gold & Silver

The initiative by Dhan, a platform competing with rivals like Groww and Zerodha, seeks to democratize access to bullion investment. By connecting directly to MCX prices, Gold Vault aims to eliminate the markups and hidden spreads often associated with traditional gold purchases. Addressing Traditional Concerns:\nTraditionally, gold buying in India has been marred by concerns over purity, accurate pricing, and the safety of storage. Dhan's new offering directly confronts these issues by providing a regulated avenue for acquiring physical gold and silver. Investors can acquire assets based on live commodity exchange prices. Regulatory Framework and Security:\nThe product operates under the SEBI-regulated capital market framework. Settlement is handled through MCXCCL, ensuring a regulated route for investors. The acquired bullion is stored in exchange-regulated vaults via ComRIS accounts, utilizing infrastructure typically reserved for institutional participants. This structure is designed to mitigate counterparty risk significantly. Democratizing Bullion Investment:\nPravin Jadhav, Founder and CEO of Dhan, emphasized the product's foundation in investor safety, stating, "The answer was exchange settlement contracts, regulated vaulting and zero counterparty risk." Jay Prakash Gupta, Founder and COO, added that Dhan is extending ownership structures previously available mainly to sophisticated market participants. Praveena Rai, Managing Director and CEO of MCX, highlighted the potential for improved transparency and accessibility in gold investing. This development follows Dhan's recent acquisition of algorithmic trading platform Stratzy.