What if the value and stability of precious metals could be combined with the possibilities of blockchain technology? Some experts compare cryptocurrencies with gold because of their limited supplies and potential as stores of value. What if the benefits of physical precious metals could also be transferred to digital markets?
Many financial organizations and technology companies are already exploring this possibility. They have introduced blockchain-based products that represent ownership of physical gold and silver, allowing investors to purchase, hold and transfer precious metal assets digitally.
The advantages of this development are manifold. The ownership of a gold bar can be recorded digitally, making it easier to verify asset allocations and track transactions. Cryptocurrencies backed by physical commodities can offer an alternative to purely speculative digital assets. Public blockchain records, independent audits and digital ownership certificates may also attract investors who have previously shied away from precious metals.
However, tokenization does not eliminate all risks. The reliability of these products depends on the quality of their physical reserves, custody arrangements, redemption mechanisms and the legal rights granted to token holders. Furthermore, gold-backed tokens follow the market price of gold and are therefore exposed to its price fluctuations.
Several major financial and technology companies are combining traditional commodities with blockchain infrastructure.
Major Institutions and Their Precious Metals Initiatives
Paxos. This financial technology company has introduced Pax Gold (PAXG), a digital token backed by physical gold. Each PAXG token represents one fine troy ounce of investment-grade gold stored in LBMA-approved vaults in London. Token holders have ownership rights to the underlying gold held in custody by Paxos Trust Company.
The product combines physical gold ownership with blockchain-based transfers. Investors can purchase smaller amounts of gold without having to arrange individual storage facilities. Paxos also provides monthly independent attestations of the gold reserves. Its trust company is regulated by the US Office of the Comptroller of the Currency (OCC).
Paxos Labs has also introduced PAXGy, a product built on PAXG. Unlike a conventional gold-backed token, PAXGy is designed to increase its value in gold terms. Its reserve assets are deployed in the institutional gold-leasing market, with the product using PAXG as its underlying gold-backed asset.
Tether. The company behind the USDT stablecoin has also entered the precious metals market with Tether Gold (XAUT). Each token represents ownership of one fine troy ounce of physical gold stored in a Swiss vault. The product provides digital access to gold through blockchain transactions while retaining a connection to physical bullion.
Tether Gold offers investors an alternative to holding conventional gold certificates or purchasing physical bars. Its digital structure allows tokens to be transferred between compatible wallets and traded through supported cryptocurrency platforms.
The product has also attracted institutional interest. In March 2026, digital asset liquidity provider B2C2 introduced over-the-counter trading in PAXG and XAUT for institutional clients. The service provides access to gold-backed tokens against selected cryptocurrencies, stablecoins and fiat currencies, with round-the-clock trading and settlement.
DBS Bank. One of the most significant developments in institutional gold tokenization comes from Singapore. In June 2026, DBS announced plans to introduce DBS Physical Gold Tokens for retail customers.
Each token represents one gram of physical gold held in a dedicated DBS vault in Singapore. The bank intends to make the tokens available through its digibank application, allowing customers to access, hold and trade their gold digitally. Fractional ownership is also part of the offering, making smaller investments possible.
DBS plans to manage the tokenization process, issuance, distribution and underlying gold holdings in-house. Customers will also have the option to redeem their tokens for physical gold. The bank is exploring a potential listing on DBS Digital Exchange for accredited investors and institutional partners.
Matrixdock. This Asian real-world asset tokenization platform has developed Matrixdock Gold (XAUm), a blockchain-based product backed by physical gold. Each token represents one troy ounce of 99.99% pure gold sourced from refiners on the LBMA Good Delivery List.
The project places particular emphasis on asset verification. Its infrastructure combines independent physical audits with blockchain records, allowing token holders to check the allocation of their gold against individual bar information. Physical redemption is available under specified conditions, including arrangements for customers in Singapore and Hong Kong.
Matrixdock is also expanding the blockchain infrastructure supporting the product. In September 2026, the company launched XAUm on Circle’s Arc network, an EVM-compatible blockchain. The integration provides access to decentralized trading through Uniswap and same-day USDC redemption for eligible holders.
Other Significant Organisations
Kinesis. This digital asset platform offers its own gold and silver products, KAU and KAG. Each KAU represents one gram of physical gold, while each KAG corresponds to one ounce of physical silver.
The underlying precious metals are allocated to token holders and stored in insured vaults through the company’s bullion partners. Kinesis also provides independent physical audits, conducted twice a year by Bureau Veritas, to verify the reserves against the digital assets in circulation.
One of the platform’s distinguishing features is its physical redemption mechanism. Holders can request delivery of the underlying bullion, subject to minimum withdrawal amounts, fees and delivery requirements. The system also supports digital transfers and trading, providing an alternative way to manage precious metal holdings.
Tradewind Markets. This American company has developed VaultChain Gold, a digital ownership system for physical gold. Its infrastructure connects investors with bullion stored at the Royal Canadian Mint.
The platform enables users to purchase and manage physical gold digitally. Unlike products that represent interests in a fund or derivative, VaultChain is structured around direct beneficial ownership of the underlying metal. Investors can also request physical delivery through participating dealers.
The blockchain infrastructure maintains records of precious metal ownership and provides information about the metal’s supply chain. This can help investors verify their holdings and obtain information about the assets they own.
Digix Global. One of the earlier companies to explore blockchain-based gold ownership, Digix introduced DGX, an Ethereum-based token backed by physical gold. The project used certified gold refiners and digital asset records to connect tokens with physical bullion.
DigixDAO, the decentralized governance organization associated with the ecosystem, was subsequently dissolved following a governance vote. Digix Global and its DGX token were reported to continue separately as a private venture. Consequently, the project represents an earlier example of blockchain-based precious metal ownership rather than a new institutional initiative.
What Blockchain Can Bring to Precious Metals
The development of tokenized precious metals offers several possible advantages for investors and financial institutions.
Fractional ownership. Physical gold bars can be expensive and difficult to divide into smaller investments. Tokenization allows ownership to be represented in smaller digital units, potentially making precious metals accessible to a broader range of investors.
Transparency and verification. Blockchain records can provide information about token issuance, transfers and asset allocations. When combined with independent physical audits and identifiable bullion records, this infrastructure can make it easier to verify the relationship between digital tokens and physical reserves.
Faster transactions. Traditional precious metal transactions can involve intermediaries, paperwork and settlement delays. Blockchain-based systems can facilitate digital transfers and, depending on the platform, offer round-the-clock trading and faster settlement.
Integration with digital finance. Tokenized gold and silver can potentially be used in decentralized finance applications, including lending and collateral arrangements. Some platforms are already exploring ways to make physical commodities more accessible within digital asset markets.
Alternative asset exposure. Gold-backed tokens provide another way to gain exposure to precious metals without directly storing physical bullion. They can also be transferred and managed through compatible digital wallets and trading platforms.
Nevertheless, blockchain technology does not automatically guarantee the authenticity or availability of physical reserves. Investors should examine the issuer, custody arrangements, independent audit reports, redemption conditions and applicable regulatory protections before purchasing these products.
The combination of blockchain and precious metals is creating new opportunities for digital ownership and commodity trading. As banks, technology companies and financial institutions continue to explore tokenization, gold and silver may become increasingly integrated into the digital financial system.
