Gold tokenization sounds simple-back tokens with physical gold and sell them. But businesses that approach it that way usually run into trust and compliance issues. To succeed, the platform has to prove that every token is real, tradeable, and regulated.
Key considerations include:
Custody and audits: Secure gold storage and regular third-party verification. Fractionalization logic: Allow smaller investors to participate without high entry barriers. Smart contract design: Automate transfers, redemptions, and dividend-like payouts. Regulatory compliance: KYC/AML workflows tailored for each region (US, EU, UAE, etc.). Liquidity channels: Build in exchange or trading mechanisms for 24/7 access.
The global tokenized gold market has already surpassed $2.5B in value, proving investor demand is real. If done right, tokenization doesn’t just digitize gold; it creates a trusted financial product.