Why tokenized gold beats other paper alternatives — Gold DAO
Investors continue to pour into gold amid macroeconomic uncertainty and ongoing geopolitical tensions that have impacted risk asset prices.
Tokenized gold carries several benefits over other forms of paper gold, including gold exchange-traded funds (ETFs), according to Melissa Song and Dustin Becker, representatives of Gold DAO, a decentralized autonomous organization that facilitates investor access to tokenized gold.
In an interview with Cointelegraph, the DAO representatives outlined three major benefits unique to tokenized gold, including 1:1 redeemability for a specific quantity of physical, serialized gold, usage as collateral in decentralized finance (DeFi) applications, and transactional efficiency through on-demand liquidity.
„When you buy an ETF, you are betting on the gold price going up, but you do not own any specific gold bar,“ Song told Cointelegraph.