Tokenized gold offers distinct advantages over paper gold alternatives, such as gold ETFs. Representatives from Gold DAO, a decentralized organization that promotes access to tokenized gold, highlighted three key benefits: 1:1 redeemability for specific physical gold, usage as collateral in decentralized finance (DeFi), and increased transactional efficiency due to on-demand liquidity. While ETFs allow investors to speculate on gold prices, they do not grant ownership of actual gold. The price of gold has surged in 2025 amid macroeconomic uncertainties and geopolitical tensions. In this context, gold-backed cryptocurrencies are also gaining traction. Analyst Max Keiser pointed out that gold-backed stablecoins could outperform USD-backed ones, especially in nations like Russia, China, and Iran facing geopolitical pressures. The current trends suggest investors might begin viewing Bitcoin as more of a store of value during economic turbulence, contrasting its speculative image.

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