Beyond Gold ETF: The New Era of Gold Tokens Brought by Blockchain

wrekt_but_learning · 2026-01-21T10:05:08+00:00

A recent perspective from Tang Bo, Deputy Director of the Financial Research Institute at HKUST, highlights the differences between gold tokens and traditional gold ETFs. Gold tokens, based on blockchain technology, offer unique financial experiences, including direct ownership and interest generation, which traditional ETFs do not provide. Tang predicts that gold tokenization will be a promising area in the asset tokenization market, signaling a significant shift towards the digitization of real assets.

wrekt_but_learning

2026-01-21 10:05:08

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Dr. Tangbo, Deputy Director of the Hong Kong University of Science and Technology’s Financial Research Institute, recently presented a noteworthy perspective in the financial industry. While gold tokens and traditional gold ETFs may appear similar on the surface, the application of blockchain technology offers a completely different financial experience. In particular, his claim reported through PANews on January 17 predicts that gold will become the most promising sector in the field of real asset (RWA) tokenization in the future.

Gold Token vs. Gold ETF: Fundamental Differences

Traditional gold ETFs are merely simple asset certificates linked only to the value of gold. In contrast, gold tokens are on-chain assets that correspond 1:1 with physical gold, existing in the form of blockchain-based tokens. This has significant implications. Holders of gold tokens can perform actions that gold ETF investors cannot. They can withdraw physical gold from the vault and, more importantly, secure actual ownership of the stored gold.

The Hidden Value of Gold Enabled by Blockchain

The most critical feature distinguishing gold tokens from existing gold ETFs is their ability to generate interest in an on-chain environment. On the blockchain, gold tokens go beyond mere holdings and function as a means of generating income. They can participate in various financial activities such as collateral loans, liquidity provision, and staking. As the status of gold as a safe asset is being reaffirmed, tokenization technology is endowing this long-standing asset with groundbreaking financial properties.

Professor Tangbo’s Outlook in the RWA Era

Real asset tokenization (RWA) is emerging as a next-generation growth driver in the blockchain industry. Among various RWA projects, the tokenization of gold is considered the most feasible and likely to expand. Unlike traditional financial products represented by gold ETFs, gold tokens possess both the transparency and efficiency of blockchain networks. Deputy Director Tangbo’s observation signals a massive structural shift where the entire physical asset market is moving toward digitalization.

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