Tokenised gold derivatives are set for significant institutional growth as part of a wider adoption of tokenised assets, with 86% of investors expressing interest in exploring these products within the next year.
That’s according to a new report from Acuiti – From Bullion to Blockchain: Digital Gold Derivatives and the Future of Tokenisation – which explores the accelerating institutional interest in tokenised gold derivatives.
While still in the early stages of adoption, particularly among traditional financial institutions, the market is already seeing meaningful engagement from digital asset trading firms. These early adopters are drawn by the potential for 24/7 trading, reduced transaction costs and faster settlement.
The findings of the report highlight a strong underlying interest in tokenised gold derivatives that exceeds current levels of active trading and points to significant growth over the next 12 months.
Although only 4% of surveyed institutions are currently active in the space, digital-native firms are leading the interested parties with 83% planning to trade these products soon, while traditional financial institutions show growing awareness and cautious optimism.
“Tokenised gold derivatives represent a significant step forward in the evolution of financial markets,” said Ross Lancaster, head of research at Acuiti. “While regulatory uncertainty and liquidity constraints remain key challenges, our research shows strong underlying demand for tokenised gold derivatives and a wider pool of tokenised real world assets.”
In December, digital assets exchange Deribit launched gold futures and options based on Pax Gold, a token created by Paxos that is backed 1:1 by a fine troy ounce of LMBA good delivery gold vaulted in London.
These developments mark the first steps in a move to a digital derivatives market made up of tokenised assets and collateral settled on a blockchain. This promises to bring new efficiencies and dynamics to the market.
“The response to Pax Gold derivatives has been strong from day one. We launched these products to meet growing demand from our clients for access to gold in a format that fits their trading strategies: liquid, 24/7 and fully on-chain.
“It’s clear that tokenised commodities are more than a trend, they’re becoming part of the core strategy for both traditional and crypto native traders,” said Shaun Fernando, Chief Risk Officer at Deribit.
According to the report, institutional awareness varies significantly, with 75% of digital asset firms being very familiar with tokenised gold, compared to only 43% of traditional finance institutions.
Liquidity and regulatory clarity meanwhile, are the primary drivers for adoption, with 66% of respondents identifying liquidity constraints as a major barrier.
Tokenised gold derivatives are perceived as complementary rather than disruptive, with 59% of respondents expecting them to play a niche role alongside traditional gold instruments.
The report also underscores the potential of tokenised gold to serve as collateral in derivatives trading, with 89% of respondents identifying precious metals as the most suitable category for tokenisation.
