Tokenized gold carries a number of advantages over different types of paper gold, together with gold exchange-traded funds (ETFs), in keeping with Melissa Track 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 selected amount of bodily, serialized gold, utilization as collateral in decentralized finance (DeFi) functions, and transactional effectivity by on-demand liquidity.
“Once you purchase an ETF, you’re betting on the gold value going up, however you don’t personal any particular gold bar,” Track instructed Cointelegraph.
The pair added that the worth of gold surged in 2025 because of the present macroeconomic uncertainty, the excessive stage of US authorities debt, and geopolitical tensions which can be reshaping the worldwide financial order.
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Macroeconomic uncertainty spikes gold costs, leaves USD unsure
Gold hit an all-time excessive of $3,500 per ounce in April 2025 amid the commerce tariffs introduced by United States President Donald Trump that brought on 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 nations.
This rush to gold additionally brought on gold-backed cryptocurrencies comparable to Paxos Gold (PAXG) and Tether Gold (XAUT) to spike in value throughout April 2024.
Bitcoin advocate Max Keiser argued that gold-backed tokens will outcompete fiat stablecoins because of the lack of geopolitical danger 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 publish.
“America greenback has no volatility, however you’re assured to lose buying energy,” the BTC advocate continued.
Gold’s present rally might spill over into Bitcoin if traders shift from viewing Bitcoin as a danger asset to extra of a retailer of worth in turbulent financial instances that’s counter-cyclical to the inventory market and different speculative investments.
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This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a call.