Tokenized Gold

Abstract

The recent introduction of tokenized gold raises some provocative questions. Is it possible to revive elements of a gold standard in the digital age? What are the economic implications of having a competing medium of exchange? Tokenized gold is much different from current gold ETFs in that it can be used for everyday payments as well as investment purposes. Tokenized gold can also produce a rate of return when deployed as a staking asset or when it is lent. Intriguingly, this new gold standard does not require any central bank intervention - consumers and investors choose to use it. Although the market is in its infancy, our research shows that tokenized gold closely tracks traditional gold benchmarks - even in times of market stress like the 10 standard deviation drawdown in the price of gold on January 30, 2026. In contrast to futures markets, tokenized gold provides 24/7 trading, providing liquidity in times of stress, such as the strike on Iran over the weekend of February 28, 2026. In addition, tokenized gold is already integrated into decentralized financial market structure. This innovation is not without risks, including redemption frictions, legal and custodial risks, and blockchain-related vulnerabilities. Overall, gold tokenization enables continuous, fractional, global exchange while offering an opt-in digital gold standard. 

Keywords: Digital Securities, Tokenization, Real-World Assets, RWA, Blockchain, Gold, Geoeconomics, DeFi, Safe-Haven, Crash Risk, Decentralized Finance, Convenience Premium

JEL Classification: G15, G18, G23, G28, O38