2025-12-05 15:35:11

The CEO of Euro Pacific Capital recently raised an interesting topic—can tokenized gold actually be used as money?

His idea is pretty straightforward: turn gold into tokens (like TGold), retaining the inherent value of gold while enabling it to circulate like digital currency. It does sound appealing—after all, gold has been a hard currency for thousands of years, and digitalization could theoretically solve the long-standing issues of portability and divisibility.

But from the perspective of value anchoring, it’s not that simple. The value of traditional gold comes from its scarcity and global consensus. After tokenization, can this foundation of trust be maintained? Custody risk, redemption mechanisms, regulatory acceptance—every aspect must withstand scrutiny.

Ultimately, this feels more like an exploration of a new currency form—one that is backed by physical assets while also possessing the instant settlement capabilities of blockchain. Whether or not it will work, the market will provide the answer.

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FloorPriceWatcher

· 11h ago

Tokenizing gold sounds romantic, but the custodial risk really can't be prevented... Who can guarantee there is actually gold in those vaults? --- Another set of "both...and..." maneuvers, why does it always feel like the same old routine... but how does it actually work in practice? --- At the end of the day, it's still a trust issue. Digitalization doesn't change the fact that nobody really wants gold itself. --- Wait a minute, is there any fundamental difference between tokenized gold and current gold ETFs? Aren't they both reliant on centralized custody? --- It's a great idea, just not sure when regulation will be able to keep up. --- So the core issue is still: who provides the backing? Otherwise, it's not much different from an air token.

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RealYieldWizard