Tokenized gold, a concept gaining traction in the crypto world, is being lauded for its unique benefits compared to traditional forms of gold ownership such as gold ETFs. Melissa Song and Dustin Becker, representatives of Gold DAO, a decentralized autonomous organization facilitating investor access to tokenized gold, recently highlighted these advantages in an interview with Cointelegraph.
One key benefit of tokenized gold is the 1:1 redeemability for a specific quantity of physical, serialized gold. This feature sets it apart from gold ETFs where investors do not have ownership of any specific gold bar, but rather bet on the gold price. Additionally, tokenized gold can be used as collateral in decentralized finance (DeFi) applications, offering investors more flexibility in their investment strategies. Another advantage is the transactional efficiency provided by on-demand liquidity, making it easier for investors to buy and sell tokenized gold quickly.
The surge in the price of gold in 2025 has further bolstered the appeal of tokenized gold. Various factors such as macroeconomic uncertainty, high levels of US government debt, and geopolitical tensions reshaping the global monetary order have contributed to the increase in gold prices. In April 2025, gold hit an all-time high of $3,500 per ounce amidst trade tariffs announced by US President Donald Trump, causing turmoil in risk-on asset markets like stocks and cryptocurrencies. This led traders to seek refuge in safe-haven assets like gold, driving up demand for gold-backed cryptocurrencies like Paxos Gold (PAXG) and Tether Gold (XAUT).
Prominent Bitcoin advocate Max Keiser has argued that gold-backed tokens could outcompete fiat stablecoins due to the inherent geopolitical risk and inflation resistance of gold. Keiser emphasized the stability and value preservation qualities of gold-backed stablecoins, suggesting that they could gain traction in international markets.
The current rally in gold prices may also have implications for Bitcoin, with potential for investors to view Bitcoin as a store of value in turbulent economic times. This shift could position Bitcoin as a counter-cyclical asset to the stock market and other speculative investments, further blurring the lines between traditional and digital assets.
In conclusion, the rise of tokenized gold presents a new avenue for investors to access the benefits of gold ownership in a more efficient and flexible manner. As the global economic landscape continues to evolve, the intersection of traditional assets like gold with innovative technologies like blockchain and DeFi is likely to reshape the investment landscape in profound ways.
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