Gold has been regarded as the safest trading vehicle for centuries, with many viewing it as a reliable hedge against inflation. However, despite its historical resilience, physical gold presents challenges:
- Limited Liquidity: Buying/selling gold is less convenient than cryptocurrencies.
- Storage Hassles: Requires physical security and storage solutions.
Gold-backed tokens merge gold’s stability with blockchain’s efficiency, offering crypto traders a compelling hybrid asset.
How Gold-Backed Tokens Work
Unlike physical gold, these tokens leverage blockchain technology:
- Fungibility: Divisible into small units (e.g., 0.000001 XAUT).
- Global Transfers: Sent worldwide in minutes.
- Secure Storage: Held in Web3 wallets without custodial fees.
Each token represents a specific gold quantity (e.g., 1 token = 1 gram or 1 ounce of gold).
👉 Explore gold-backed tokens on OKX
Top Gold-Backed Tokens in 2024
1. Tether Gold (XAUT)
- Backing: 1 XAUT = 1 ounce (31.1035g) of gold stored in Swiss vaults.
- Blockchains: Ethereum (ERC-20) and Tron (TRC-20).
- Redemption: Minimum 50 XAUT (~$100,000) for physical delivery or cash.
- Market Cap: $500M+ | **Daily Volume**: $10M.
2. PAX Gold (PAXG)
- Backing: 1 PAXG = 1 ounce of London Good Delivery gold.
- Regulation: Approved by NYDFS, with monthly audits.
- Transparency: Serial numbers link tokens to specific gold bars.
- Market Cap: $423M | **Daily Volume**: $8M.
How to Buy Gold-Backed Tokens
Via OKX Web Platform:
- Register an OKX account and verify it.
- Deposit USDT (use "Express Buy" if needed).
- Navigate to Trade > Spot > Search "XAUT/USDT".
- Place Order: Market or limit buy.
Via OKX Mobile App:
👉 Start trading gold tokens today
Benefits of Gold-Backed Tokens
✔ Instant Liquidity – Trade 24/7 on crypto exchanges.
✔ Low-Cost Transfers – Blockchain eliminates physical shipping fees.
✔ Inflation Hedge – Combines gold’s stability with crypto accessibility.
✔ Transparent Audits – Regular reserve verifications (e.g., Paxos’ monthly checks).
Risks to Consider
⚠ Third-Party Reliance: Tokens depend on issuer solvency.
⚠ Regulatory Uncertainty: Evolving RWA (Real-World Asset) regulations.
⚠ Audit Gaps: Ensure reserves match circulating supply.
FAQs
Q: Are gold-backed tokens safer than physical gold?
A: They eliminate storage risks but introduce issuer dependency.
Q: Can I redeem tokens for physical gold?
A: Yes, but minimums apply (e.g., 50 XAUT for Tether Gold).
Q: How do I verify gold reserves?
A: Check issuer reports (e.g., Tether’s transparency page).