Fiat-referenced tokens (VEUR and VCHF) are generated based on the VNX Gold Token (VNXAU) which then may be replaced with an equivalent amount of assets.

The gold that underlies VNX Gold, is physically stored in a segregated storage in a high-security vault in Liechtenstein – a country known for its stable economy, the highest S&P AAA rating, and a member of the EEA. When FRTs are generated, the price of gold is hedged against the corresponding FRT currency. This means that for every FRT generated by VNX and remaining in circulation, VNX will hold an equivalent amount of reserve.

VNX may use VNX Gold as reserve to manage the correlation. The reserve will be managed in accordance with the reserve management policy and kept in the banking systems of Liechtenstein and Switzerland.
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You can read more about the location of the assets and fiat-referenced tokens in the FRT Terms and FRT white paper at www.vnx.li; about VNX Gold in the VNX Gold white paper at https://vnx.gitbook.io/vnx-platform/documents/white-papers or in the Terms and Conditions at https://vnx-terms.s3.eu-central-1.amazonaws.com/VNX-Commodity-Token-Terms.pdf. You can read more about FRT tokenomics in the FRT terms and conditions here - https://vnx.gitbook.io/vnx-platform/documents/terms-and-conditions.
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