Gold tokens such as PAXG and XAUT essentially tokenize the ownership of physical gold through a 1:1 anchoring model to physical gold, making each token correspond to LBMA-certified physical gold stored in professional vaults.
This design allows investors to retain the core value of gold as a hedge against inflation and risk while benefiting from the efficient liquidity provided by blockchain technology: supporting nearly instant global transactions, fragmented investments as low as 0.01 ounces, and eliminating the costs of storing and transporting physical gold.
Currently, it is not only retail investors but also large institutions that are focusing on this area. The World Gold Council has proposed the "Pool Gold Interest" (PGI) scheme, aimed at optimizing the clearing and collateral processes for large gold transactions between institutions. Additionally, tokenized gold demonstrates flexible application scenarios in the DeFi ecosystem, such as being used as collateral for lending or providing liquidity to earn additional returns.
When choosing gold tokens, the underlying security of the asset is crucial. Investors should pay close attention to the issuer's reputation, the regulatory oversight (such as PAXG being regulated by the New York State Department of Financial Services), and whether regular, independent third-party audit reports are provided, all of which are key factors in assessing risk.
In summary, gold tokens successfully combine the stability of traditional assets with the efficiency of the crypto world, providing an innovative tool option for asset allocation.
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