Time to Invest in Tokenized Gold? Economic Trend Suggests So
The post Time to Invest in Tokenized Gold? Economic Trend Suggests So appeared on BitcoinEthereumNews.com.
Tokenized gold is gaining momentum as geopolitical uncertainty and rising gold prices weaken trust in fiat-backed assets. Major institutions and sovereign actors are launching or expanding gold-backed tokens. This shift suggests tokenized gold may soon move beyond its niche role amd become a credible next-generation, stable, and globally usable digital value. Sponsored A Five-Year Flight to Safety The turbulence of the past few months has reinforced the role of gold as a safe-haven asset. It was only two months ago that the metal’s price hit a record, surpassing $4,000 per ounce. This isn’t only a recent phenomenon. Between 2020 and 2025, the price of gold more than doubled, reflecting a wider flight to safety as global markets confronted a pandemic, inflation, wars, sanctions, and persistent geopolitical tensions. The price of gold over the past five years. Source: Gold Price. At the same time, advances in blockchain technology have transformed the use of gold. Tokenization, instant settlement, and 24/7 global liquidity now make a traditionally static asset far more flexible in digital form. Several developments show how quickly the trend is gaining traction across both crypto and traditional finance. Sponsored Institutional Gold Tokens on the Rise Last month, Swiss metals giant MKS PAMP, one of the world’s largest gold refiners and a major supplier of precious metals to global markets, relaunched DGLD, a gold-backed token designed for institutional investors. In the crypto space, Tether Gold (XAUt) continues to see steady growth. Pax Gold (PAXG), launched by New York–regulated blockchain firm Paxos, is also expanding. Together, their market caps now exceed $3 billion, making them the most widely used gold-backed digital assets available to the public. Traditional banking players are also testing the waters. HSBC, one of the largest multinational banks and a major custodian of physical gold through its London vaults,…