A recent report from the World Gold Council suggests that the integration of blockchain technology into the gold market—specifically through tokenization—has the potential to unlock approximately $700 billion in new demand. Tokenization involves creating digital tokens on a blockchain that represent ownership of physical gold, allowing for fractional ownership, increased liquidity, and easier trading of the asset.

By digitizing gold, the industry aims to attract a new generation of investors who are more comfortable with digital assets than traditional bullion markets. The World Gold Council’s analysis posits that this technological shift could bridge the gap between legacy financial systems and decentralized finance (DeFi). While the report focuses on the potential for market expansion, it implies that the accessibility provided by tokenization is the primary driver for this projected growth. The report does not detail specific regulatory hurdles or the technical risks associated with digital custody, focusing instead on the macroeconomic potential of the asset class transformation.