Wall Street Anticipates Tokenization to Transform Gold Trading

2025-11-02 economy

New York, Sunday, 2 November 2025.
Wall Street analysts predict tokenization to enhance gold trading, increasing liquidity and accessibility amid soaring gold prices, signaling a significant shift in global commodity markets.

Tokenization: A New Era for Gold Trading

Tokenization, a process that involves converting tangible assets into digital tokens on a blockchain, is poised to revolutionize how gold is traded globally. The method enhances transparency, facilitates fractional ownership, and broadens accessibility, allowing more investors to participate in the gold market without needing to purchase whole bullion bars. This shift is particularly pertinent as gold prices have reached record highs, with the global price standing at approximately $2,350 per ounce as of June 2024 [5].

Rising Interest in Tokenized Gold

The demand for tokenized gold assets is reflected in the significant increase in trading volumes, with leading gold tokens seeing daily trading volumes exceeding $50 million as of June 2024. This surge indicates growing institutional interest, with financial entities recognizing the benefits of programmable finance and the flexibility tokenization offers [5]. Such advancements are further supported by strategic initiatives from major firms like Blue Gold, which recently appointed Jagdish M. Chanrai to its Advisory Board to spearhead the development of a liquid digital gold currency [8].

Impact on Global Markets

As tokenization of real-world assets (RWAs), including gold, expands, the total market value of these digital assets reached $35.66 billion by the end of October 2025, marking an 8.77% increase over the previous month [7]. This growth underscores the broader trend of financial markets embracing digital transformations, which promise to make trading more efficient and accessible. Institutions like Standard Chartered forecast that the RWA market could reach $2 trillion by 2028, highlighting the significant potential for future expansion [7].

Challenges and Future Outlook

Despite the promising prospects, the tokenization of gold is not without challenges. Risks such as smart contract vulnerabilities and the need for robust regulatory frameworks remain. Jurisdictions like Singapore and Switzerland are actively developing regulations to ensure the secure custody and settlement of digital assets [5]. As the financial landscape continues to evolve, the success of tokenized gold will depend on overcoming these hurdles and achieving widespread adoption across both institutional and retail investors.

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tokenization gold market