Tokenized Gold Fuels RWA Growth in 2025

Tokenized gold has emerged as a significant driver of growth within the Real World Asset (RWA) space. Recent data indicates a substantial increase in the value of on-chain gold products, surpassing traditional gold investments such as physical bullion and many gold ETFs. This shift suggests a growing preference for blockchain-based gold trading among investors.

The appeal of tokenized gold lies in its ability to offer increased accessibility, fractional ownership, and potentially lower transaction costs compared to traditional gold investments. By representing physical gold as digital tokens on a blockchain, investors can easily buy, sell, and store gold without the complexities associated with physical ownership.

Expert View

The rise of tokenized gold represents a pivotal moment in the integration of traditional assets into the decentralized finance (DeFi) ecosystem. Its impact extends beyond simply replicating existing investment vehicles on the blockchain. The increased transparency and efficiency offered by blockchain technology could unlock new opportunities for price discovery and risk management within the gold market. While the specific percentage contributions cited are notable, it's important to assess the underlying methodologies and data sources for complete accuracy. The trend, however, is undeniable: Tokenized gold is rapidly gaining traction.

From a market structure perspective, the increasing volume of tokenized gold also has implications for liquidity and regulatory oversight. As more trading activity migrates to blockchain rails, regulators will need to adapt existing frameworks to address the unique characteristics of this emerging asset class.

What To Watch

Several factors will influence the continued growth and adoption of tokenized gold. These include regulatory developments, advancements in blockchain technology, and the emergence of new platforms and protocols that facilitate the creation and trading of tokenized assets. The success of established players in the tokenized gold market, as well as the entry of new participants, will also shape the competitive landscape.

It's crucial to monitor the total value locked (TVL) in tokenized gold protocols, trading volumes on decentralized exchanges (DEXs), and the integration of tokenized gold into various DeFi applications, such as lending and borrowing platforms. Any regulatory pronouncements or significant technological breakthroughs will warrant close attention, as they could have a material impact on the future trajectory of this market.

Finally, keep a close watch on how tokenized gold performs relative to traditional gold assets during periods of market volatility. This will provide valuable insights into its role as a potential hedge against inflation and economic uncertainty.

Source: Cointelegraph