Tokenized Gold Emerges as a New Asset Class in the RWA Landscape

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According to industry experts, gold tokenization is establishing itself as a promising asset category within the ecosystem of real-world asset (RWA) tokenization. Tang Bo, Vice Dean of the Financial Research Institute at the Hong Kong University of Science and Technology, emphasizes how this technological innovation is destined to transform one of the most traditional safe-haven assets in history, giving it new financial dimensions. With gold values appreciating in international markets, blockchain is emerging as the ideal vehicle to modernize this ancient asset.

A New Approach to Safe-Haven Assets: Tokenization vs. Traditional ETFs

The fundamental difference between gold tokens and conventional financial products lies in the very structure of ownership and accessibility. While gold ETFs simply represent certificates of ownership of the underlying assets, gold tokens offer a one-to-one representation of physical gold, serving as a 1:1 certificate. This means each token corresponds to a specific amount of gold stored in secure vaults, and holders retain the right to directly withdraw the physical asset when desired.

This feature is particularly relevant for those seeking a tangible connection to the underlying asset, rather than mere credit rights as with traditional financial instruments.

Yield Generation Mechanisms in Gold Tokens

One of the most significant advantages of gold tokenization is the ability to generate yields directly on the blockchain. Unlike traditional physical gold, which remains financially inert when held, gold tokens can participate in collateralized lending mechanisms and other yield-generating strategies.

This capacity to produce passive income represents a qualitative leap in the financial properties of the traditional asset class, allowing investors to profit from holding the asset itself. The combination of the safe-haven nature of gold with yield opportunities on the blockchain creates a new frontier for investors seeking diversification and capital protection.

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