Gold DAO asserts that tokenized gold surpasses other derivatives like ETFs, thanks to its 1:1 redemption capability, DeFi collateralization, and high liquidity.
In the context of a volatile global economy, where macroeconomic instability and geopolitical tensions continuously undermine confidence in risky assets, gold once again asserts its role as a safe haven for capital flows. However, along with the rapid development of blockchain technology, the approach to gold is undergoing profound changes.
Tokenized gold – representing ownership of a specific amount of physical gold on the blockchain – is emerging as a more effective and flexible investment tool compared to traditional derivative products like ETFs.
According to Gold DAO, a decentralized autonomous organization operating in this field, tokenized gold provides real ownership thanks to its ability to be redeemed 1:1 with physical gold with a defined serial number. At the same time, this asset can be used in the decentralized finance (DeFi) ecosystem, serving as collateral, thereby increasing capital efficiency.
The gold price reached an ATH against the USD. Source: Tradingview
Moreover, trading on blockchain platforms significantly improves liquidity and asset turnover speed compared to traditional instruments limited by trading hours and intermediary processes.
Melissa Song, representative of Gold DAO, asserts that the core difference between gold ETFs and gold tokens lies in real ownership. According to her, when investors buy gold ETFs, they simply access the asset's value without holding any specific gold bars, whereas with tokenization, ownership is ensured more clearly and transparently.
The strong price increase of gold in 2025 – peaking at $3,500/ounce in April – reflects a defensive sentiment against risks caused by trade policies, especially after U.S. President Donald Trump announced new tariffs that shook the stock and cryptocurrency markets. Pressure from rising public debt along with shifts in the global monetary order also contributed to solidifying gold's position as a value-preserving asset.
The trend of investing in gold is not limited to physical forms or ETFs. Gold tokens such as Paxos Gold (PAXG) and Tether Gold (XAUT) are witnessing impressive growth, indicating an increasing demand for investment products that both preserve value and are easy to trade.
Investor Max Keiser even argues that gold-backed stablecoins could surpass fiat-backed stablecoins, due to their inflation resistance and immunity to geopolitical risks associated with national currencies.
Keiser argues that, although the USD maintains nominal stability, it still loses purchasing power over time – something a gold-linked stablecoin could remedy. If investors broaden their perspective on digital assets like Bitcoin, viewing them as a parallel store of value alongside gold rather than merely speculative assets, this could open a new wave of capital flowing into the crypto market, especially during high-risk periods.
