Tokenized gold carries a number of advantages over different types of paper gold, together with gold exchange-traded funds (ETFs), in keeping with Melissa Music and Dustin Becker, representatives of Gold DAO, a decentralized autonomous group that facilitates investor entry to tokenized gold.
In an interview with Cointelegraph, the DAO representatives outlined three main advantages distinctive to tokenized gold, together with 1:1 redeemability for a particular amount of bodily, serialized gold, utilization as collateral in decentralized finance (DeFi) functions, and transactional effectivity by means of on-demand liquidity.
“If you purchase an ETF, you might be betting on the gold value going up, however you don’t personal any particular gold bar,” Music advised Cointelegraph.
The pair added that the value of gold surged in 2025 because of the present macroeconomic uncertainty, the high level of US government debt, and geopolitical tensions which are reshaping the worldwide financial order.
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Macroeconomic uncertainty spikes gold costs, leaves USD unsure
Gold hit an all-time high of $3,500 per ounce in April 2025 amid the commerce tariffs introduced by United States President Donald Trump that prompted turmoil in risk-on asset markets like shares and crypto.
Merchants shifted to gold, money, and different safe-haven property to climate the intense volatility attributable to the protectionist commerce insurance policies and the counter-response from different international locations.
This rush to gold additionally prompted gold-backed cryptocurrencies comparable to Paxos Gold (PAXG) and Tether Gold (XAUT) to spike in price throughout April 2024.
Bitcoin advocate Max Keiser argued that gold-backed tokens will outcompete fiat stablecoins because of the lack of geopolitical threat and inflationary resistance inherent in gold.
“A stablecoin backed by Gold would out-compete a USD-backed stablecoin in world markets: Russia, China, and Iran ought to take notice,” Keiser wrote in a March 22 X post.
“America greenback has no volatility, however you might be assured to lose buying energy,” the BTC advocate continued.
Gold’s present rally may spill over into Bitcoin if buyers shift from viewing Bitcoin as a threat asset to extra of a retailer of worth in turbulent financial occasions that’s counter-cyclical to the inventory market and different speculative investments.
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This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a choice.