You are talking about something completely unrelated to the concern I expressed in my post which confirms my worries about the lack of understanding about how digital gold products work.
You say that “All the physical gold held by our clients is 100% secured from default”. But have you asked if their gold reserves cover 100% of clients fiat cash gold purchases? Sure, their cash in Lloyds accounts is ring fenced, but again, are their cash holdings covering 100% of the value of purchased gold?
The issue is simple: Glint users buy gold to the value of, say, 100 million pounds through the app. Now, is the equivalent of 100 million pounds in gold stored in independent vault in Zurich? Is it being updated daily, weekly or monthly according to, hopefully, growing purchases from Glint users? If next month the total value of gold purchased through Glint grows to 110 million pounds, is the extra value in gold added to their Zurich vault?
I assume that their gold reserves cover maximum 20% of what their investor bought through Glint. I wouldn’t be surprised if it is significantly less than that. The best idea would be if you ask them or if they reply to that question here or through their social media channels.
Why does it matter? If there is a sudden event resulting in the loss of confidence in the company and significant number of users request their gold, there will not be enough gold for everyone. It happened on many occasions in the past and will probably happen again as gold attract investors who have very little trust in banking sector and existing financial structures but at the same time are happy to trust gold storing companies for some odd reason.