What is tokenised gold and why are financial institutions and investors looking at it?
Beyond banks, asset managers, fintechs and crypto firms are racing to launch innovative tokenised gold products for investors
This Lunar New Year, Hongkongers can gift friends and family digital gold tokens, a new way of blending the city’s tradition of giving gold for good wishes with the convenience of blockchain technology.
HSBC added this new transfer feature earlier this month to its retail gold token, which represents fractional ownership of physical gold stored in a secure vault and is the only retail-focused gold token approved by Hong Kong’s Securities and Futures Commission.
Banks are not the only institutions rolling out tokenised gold. Asset managers, fintech firms and cryptocurrency companies are coming up with innovative products for investors to gain exposure to gold with the added transparency of blockchain.
Tokenised gold was giving investors a new way to hold the metal, easing pain points around access, custody, transfer and trading, according to experts. The growth comes amid record gold prices, a hunt for diversification and the rise of stablecoins and digital money, which could make it easier to move in and out of digital assets.
