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Gold has endured as humanity’s premier store of value for millennia, outlasting currencies, commodities, and even modern innovations like cryptocurrencies. In 2025, amid escalating geopolitical tensions—including the ongoing war in Ukraine, U.S. trade policies under President Trump, and debates over Federal Reserve independence—the precious metal has surged to unprecedented levels. Spot gold prices climbed over 70% year-to-date, surpassing $4,500 per ounce by late December, marking its strongest annual performance since 1979.

Central banks have accelerated gold accumulation since Russia’s 2022 invasion of Ukraine triggered Western asset freezes, prompting many nations to diversify reserves away from the U.S. dollar. This structural shift has transformed gold from a simple safe-haven investment into a key geostrategic instrument, with physical ownership and storage locations gaining heightened importance.

Top Central Bank Gold Holders (Latest Available Data as of Q3 2025)

According to the World Gold Council and IMF statistics (with some data lagged to March 2025 or earlier for certain reporters), global official gold reserves total around 36,000–37,000 tonnes. Here are the leading holders in tonnes:

United States: 8,133.46 tonnes (largest by far, valued over $1 trillion in 2025 amid price rallies)

Germany: ~3,351 tonnes

Italy: ~2,452 tonnes

France: ~2,437 tonnes

Russia: ~2,333 tonnes

China: 2,303.51 tonnes (official figure; estimates suggest significant undeclared additions)

Switzerland: ~1,040 tonnes

India: ~880 tonnes

Japan: ~846 tonnes

Other notable buyers: Poland (sharp increases to ~515 tonnes), Turkey, and Kazakhstan

Central banks added over 600 tonnes in the first three quarters of 2025, with full-year demand likely exceeding 1,000 tonnes for the fourth consecutive year—far above the pre-2022 average of 400–500 tonnes. A 2025 World Gold Council survey showed 95% of respondents expecting further global reserve growth.

Where Is the Gold Physically Stored?

Storage decisions reflect history, security, liquidity needs, and geopolitical trust:

United States — Own reserves are held at the Federal Reserve Bank of New York (world’s largest single vault), Fort Knox, and West Point. The New York Fed also custodies gold for many foreign central banks and institutions.

Germany — Majority in domestic vaults at the Bundesbank in Frankfurt; portions historically in New York (~37%) and London.

Italy — Bulk at the Bank of Italy in Rome; significant shares in New York (~43%), London, and Switzerland.

France — All domestically at the Banque de France vaults in Paris (fully repatriated years ago).

Russia — Entirely domestic at Bank of Russia facilities, emphasizing sovereignty post-sanctions.

China — Vast majority stored domestically; small amounts possibly at international partners like the BIS for transactions.

Other examples — The Bank of England vaults hold UK gold plus foreign and private holdings. Many emerging markets prioritize full domestic storage to mitigate risks of foreign seizure.

A growing repatriation trend has emerged, driven by doubts over U.S. neutrality as custodian. While no mass exodus from New York has occurred, experts note structural shifts toward home storage or trusted jurisdictions for legal and political security.

China’s Role and Transparency Challenges

China ranks sixth officially but is suspected of being a major hidden buyer. Analysts estimate undeclared purchases could reach 250 tonnes (or more) in 2025 alone—potentially 10x reported figures—based on trade flows, refinery data, and proxies like London exports. Some projections suggest total holdings (including unofficial) exceed 5,000 tonnes. This opacity aligns with efforts to diversify from dollar assets amid U.S.-China tensions.

Why It Matters in 2025–2026

Trump’s tariff threats (ultimately exempting gold) and confrontations with Europe spurred precautionary movements, like bars shifting from London to New York. Yet, the broader rally stems from persistent central bank demand, inflation hedging, and de-dollarization. With forecasts pointing to continued buying and prices potentially testing $5,000 in 2026, gold’s geostrategic weight shows no signs of fading.

Gold reserves provide stability in uncertain times, but values fluctuate, and physical storage involves complex logistics and risks. Data from sources like the World Gold Council remains the benchmark, though some purchases stay unreported for strategic reasons.

South Korea’s National Assembly is moving forward with legislation that would formally legalize tokenized securities, setting the stage for a regulated Security Token Offering (STO) market.

This legislative update does not directly legalize Real-World Asset (RWA) tokenization, but it does create the foundational framework that could support broader asset tokenization in the future.
Under the proposed amendments, companies and financial institutions will be able to issue and distribute blockchain-based securities within regulated channels.

The move signals South Korea’s shift toward integrating digital securities into its traditional financial system, improving investor protection and creating a compliant environment for on-chain equities and corporate instruments.

While this bill focuses specifically on STOs rather than RWAs, the industry’s push for real-world asset tokenization continues to grow.

Global institutions, infra providers, and local innovators in Korea are actively exploring RWA models — from real estate tokenization to fund structures — but these remain outside the scope of the current legislation.

South Korea’s STO framework is therefore better viewed as a structural stepping stone:

a regulatory foundation that may eventually support a fully fledged RWA ecosystem once additional laws and supervisory guidelines are introduced.
#STO #Tokenization #DigitalSecurities #MarketUpdate #RWA