Gold DAO affirms that tokenized gold surpasses other derivatives like ETFs, thanks to its 1:1 conversion ability, DeFi collateralization, and high liquidity.
In the context of global economic volatility, with macroeconomic instability and geopolitical tensions continuously shaking confidence in risky assets, gold once again confirms its role as a safe haven for capital. However, with the rapid development of blockchain technology, the approach to gold is undergoing profound changes.
Tokenized gold – representing ownership of a specific physical gold amount on a blockchain platform – 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 actual ownership through its 1:1 conversion capability with physical gold with a specific serial number. Simultaneously, this asset can be used in the decentralized financial ecosystem (DeFi), serving as collateral, thereby increasing capital utilization efficiency.
Moreover, trading on blockchain platforms helps significantly improve liquidity and asset circulation speed compared to traditional tools limited by trading hours and intermediary processes.
Gold DAO representative, Ms. Melissa Song, affirms that the core difference between gold ETFs and gold tokens lies in actual ownership. According to her, when investors buy gold ETFs, they merely access asset value without holding any specific gold bar, while with tokenization, ownership is more clearly and transparently guaranteed.
Gold's strong price increase in 2025 – reaching a peak of 3,500 USD/ounce in April – reflects a defensive sentiment against risks caused by trade policies, especially after US President Donald Trump announced new tariffs that caused stock and cryptocurrency markets to fluctuate. Increased public debt pressure and shifts in global monetary order also contributed to consolidating gold's position as a value-preserving asset.
Investment trends in gold are not limited to physical or ETF forms. Gold tokens like Paxos Gold (PAXG) and Tether Gold (XAUT) are recording impressive growth, indicating growing 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-pegged stablecoins, thanks to their ability to resist inflation and be immune to geopolitical risks inherent in national currencies.
Keiser argues that while 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 value storage channel to gold rather than just speculative assets, this could open a new wave of capital flow into the crypto market, especially during high-risk periods.
