# What Is a Standard Metal Unit?

A Standard Metal Unit is a fungible digital unit that represents the fine metal content of institutional-grade physical gold or silver, issued under a specific legal jurisdiction.

Each unit is:

* Fully backed by physical metal held in approved vaults
* Calculated based on verified fine metal content, not notional bar weight
* Issued only through deterministic, rules-based collateralization
* Governed by Global Gold Council standards

Standard Metal Units are not:

* IOUs issued by a company
* Pooled metal accounts
* ETF shares
* Fractional or rehypothecated claims

They are protocol-enforced monetary units backed by real, deliverable metal.