Tokenized Gold

Tokenized gold is physical gold (typically LBMA Good Delivery bars held in audited vaults) represented one-for-one as a blockchain token. Each token entitles the holder to a specific weight of allocated gold, redeemable for either physical delivery or cash settlement depending on the issuer's terms. The token trades like crypto but the underlying asset is the same gold institutional investors have held for centuries.

Safety depends on four factors RWTS tracks in the Trust Score: who holds the physical gold (vault custodian), how often holdings are independently audited (attestation cadence), whether you can actually redeem the token for physical metal, and the issuer's regulatory standing. PAX Gold (PAXG) and Tether Gold (XAUT) both back 1 token per troy ounce with vaulted gold; Kinesis Gold (KAU) uses 1-gram units across Brink's and Loomis vaults. All four assets we cover are Tier 1 in the RWTS methodology — physically-backed, audited, and redeemable.

PAXG and XAUT both represent 1 troy ounce of LBMA-grade gold but differ on three dimensions: PAXG (Paxos) holds gold in Brink's vaults and is regulated by the NYDFS, with twice-monthly attestations. XAUT (Tether) holds gold in Swiss vaults and publishes quarterly attestations. PAXG's regulatory anchor is stronger (NYDFS oversight); XAUT's track record is longer (Tether has more years operating tokenized commodities). Compare the live Trust Scores in the table above.

Most tokenized gold tokens do NOT pay yield natively — PAXG, XAUT, and XAUm all sit at 0% APY because the underlying physical gold itself produces no income. Kinesis Gold (KAU) is the exception, paying ~0.45% APY through Kinesis's transaction-velocity yield system (a portion of network transaction fees flows back to holders). If you want yield on gold-collateralized positions, look at lending platforms that accept PAXG as collateral (e.g. some Aave or Morpho vaults).

Yes, but with friction. PAXG holders can redeem for unallocated gold or physical bars (minimum redemption thresholds apply). XAUT redemptions go through Tether Gold's direct redemption process. KAU redemptions ship physical gold from Kinesis's allocated vaults. All redemptions require KYC and have minimums in the $50K-$430K range depending on issuer. For sub-redemption-threshold holdings, you sell the token on-chain for stablecoins or cash equivalent.

No. ETFs trade only during market hours, require a brokerage account, and represent shares in a fund that holds gold — you don't have a direct claim on a specific weight of allocated metal. Tokenized gold trades 24/7 on-chain, settles in seconds, can move between wallets without intermediaries, and represents a direct (often allocated) claim on physical gold. ETFs are more familiar and tax-advantaged in some jurisdictions; tokenized gold is more flexible operationally and accessible globally.

Every asset gets a Trust Score on a 100-point scale across six dimensions: backing (25 pts) — quality and proof of the physical reserves; verification (20 pts) — attestation and on-chain transparency; redeemability (15 pts) — how easily you can exit; audit (15 pts) — smart-contract and financial audit posture; regulatory (15 pts) — issuer compliance and licensing; and trackRecord (10 pts) — time in market and incident history. See the full methodology page for the rubric and source data.