$XAU | Gold Tokenization Emerges as a New Digital Asset Class
Gold tokenization is rapidly gaining momentum as a key segment within Real-World Asset (RWA) tokenization. According to Tang Bo, Assistant Dean at the Institute of Financial Research, Hong Kong University of Science and Technology, tokenized gold is becoming an increasingly important financial innovation.
As global uncertainty rises, investors are once again turning to gold as a safe-haven asset. Blockchain technology is now modernizing this centuries-old store of value by enabling 1:1 tokenized ownership of physical gold stored in secure vaults.
Unlike traditional gold ETFs, tokenized gold provides direct ownership. Token holders can redeem their tokens for physical gold, while ETF investors only hold paper claims linked to price movements.
Beyond ownership, tokenized gold can be used directly on blockchain networks to earn yield through DeFi, including collateral-backed lending and other on-chain financial applications. This blend of physical backing and digital utility significantly enhances gold’s flexibility.
Tokenized gold is positioning itself as a powerful bridge between traditional finance and decentralized finance, combining stability with innovation.
