Tokenized Gold Could Be the Next King of Stablecoins? Here’s Why!

Jakarta, Pintu News – Amid geopolitical uncertainty and surging gold prices, gold tokens are gaining momentum. Major institutions and sovereign actors are starting to launch or expand gold-backed tokens.

This change signals that gold tokens may soon transcend their niche role and become a stable, globally usable form of digital money.

Five Years to Security

In the past five years, gold has solidified its position as a safe haven asset. From 2020 to 2025, the price of gold more than doubled, reflecting people’s tendency to seek safety amidst global market challenges. Advances in blockchain technology have changed the way gold is used, making it more flexible in digital form.

Not only does this price increase indicate market instability, but it also increases confidence in gold as a hedge. Investors are now more than ever looking for ways to secure their assets in a more secure and accessible form, which gold tokens offer.

Read also: Silver price surge triggers new trend in crypto market, metal tokenization in demand?

Institutional Gold Tokens on the Rise

MKS PAMP, the Swiss metals giant, has relaunched DGLD, a gold-backed token aimed at institutional investors. Tokens like Tether Gold (XAUt) and Pax Gold (PAXG) are also showing growth in the crypto space. In fact, traditional banking players like HSBC are starting to experiment with their own gold tokens for clients.

Countries like Kyrgyzstan have launched USDKG, the first gold-backed stablecoin held to the US dollar, backed by the country’s national gold reserves. This move is indicative of a global trend towards the adoption of digital gold as a stable form of store of value.

Read also: Yuan Prints Best Performance Since 2020, What Impact on Crypto Market?

Regulators Are Still Cautious

Despite strong momentum, gold tokens still face challenges in terms of industry standardization. This makes it difficult for users to compare reliability between tokens. Varying transparency and regulations in different countries add uncertainty for consumers and businesses.

However, with clearer rules in place and geopolitical pressures mounting, gold tokens have great potential to become a key pillar in stable, globally usable digital money. Clarification from regulators will go a long way in increasing trust and widespread adoption of gold tokens.

Digital Gold: When Physical Assets Meet Crypto Technology

As blockchain technology develops, gold can now be owned not only in physical form such as jewelry or bars, but also in digital form through gold-based crypto assets.

One of the most popular is Tether Gold (XAUt), a physical gold-backed ERC-20-based stablecoin, where 1 token represents 1 troy ounce of pure gold. The gold is stored in vaults in Switzerland and each token is directly linked to certified gold bullion. The system uses automated algorithms to efficiently manage the allocation of gold and Ethereum addresses.

XAUt tokens are available and traded on various crypto exchanges. XAUt is also an attractive alternative for those looking to hedge against inflation or global economic uncertainty, while remaining within the digital asset ecosystem.

FAQ

What are gold tokens?

Gold tokens are digital assets whose value and ownership are backed by physical gold. These tokens allow their owners to transact with the digital equivalent of gold.

How will the gold price evolve from 2020 to 2025?

From 2020 to 2025, gold prices more than doubled, reflecting the increased demand for safe haven assets amid global market instability.

Who are the major players in the gold token market?

Major players include MKS PAMP with the DGLD token, as well as Tether Gold (XAUt) and Pax Gold (PAXG). HSBC and the Kyrgyz government have also entered the market with their own gold tokens.

What are the main challenges faced by gold tokens?

Key challenges include a lack of industry standardization and regulatory differences across countries, which creates uncertainty for users and businesses.

How can regulators affect the future of gold tokens?

By establishing clearer and more consistent rules, regulators can increase trust and facilitate the widespread adoption of gold tokens as stable and global digital money.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• BeInCrypto. Why Tokenized Gold Is Growing. Accessed on December 3, 2025
• Featured Image: Generated by Ai