Tokenized Precious Metals
digitally issued hard assets
Tokenized Precious Metals refer to gold, silver, or other valuable metals that are represented on a blockchain as digital tokens ÔÇö each fully backed by a corresponding quantity of physical metal stored in secure, audited vaults. These tokens combine the historic value of bullion with the portability, speed, and programmability of decentralized finance.
Use Case: “Tokenized precious metals like KAU and KAG allow users to store, trade, and spend physical gold and silver globally ÔÇö with all transactions secured and settled on-chain.”
Key Concepts:
- Physical Backing ÔÇö Each token is backed 1:1 by real metal held in vaulted storage.
- On-Chain Verification ÔÇö Token supply and reserves are transparently auditable.
- Redeemability ÔÇö Holders may request physical delivery, depending on jurisdiction.
- Liquidity & Access ÔÇö Enables global trade and utility without bank dependency.
Summary: Tokenized Precious Metals bridge the worlds of physical wealth and digital finance. They empower users to access sovereign assets like gold and silver in a blockchain-native format ÔÇö offering inflation resistance, yield opportunities, and global mobility without sacrificing real-world security.
| Feature | Tokenized Precious Metals | Traditional Bullion | Gold ETFs / Derivatives |
|---|---|---|---|
| Ownership | Direct ÔÇö Vaulted in holderÔÇÖs name | Direct ÔÇö Self-stored or vaulted | Indirect ÔÇö Share of pooled fund |
| Redeemability | Yes ÔÇö Physical delivery supported | Yes ÔÇö Immediate access | No ÔÇö Not redeemable |
| Transferability | Instant ÔÇö Blockchain-based | Manual ÔÇö Physical transfer | Traded on stock markets |
| Yield Generation | Yes ÔÇö HolderÔÇÖs & Velocity Yield | No | No |
| Examples | KAU, KAG, PaxG | Coins, bars, private vaults | GLD, SLV, futures contracts |