Tokenization of Gold Emerges as Promising Asset Class

According to Odaily, Tang Bo, Assistant Dean of the Institute of Financial Research at Hong Kong University of Science and Technology, has highlighted the growing potential of gold tokenization within the realm of real-world asset (RWA) tokenization. As a safe-haven asset, gold's value is experiencing a resurgence, and tokenization technology is set to imbue this ancient asset with new financial attributes. Unlike traditional gold ETFs, gold tokens serve as a 1:1 certificate for physical gold, allowing holders to directly withdraw the physical asset from vaults. In contrast, ETFs merely represent asset certificates. Furthermore, gold tokens can generate interest on the blockchain, enhancing gold's financial properties through mechanisms such as collateralized lending.