The market for tokenised gold is expanding beyond niche digital asset circles, with significant institutional interest emerging in both derivatives trading and collateral applications.
A new report by Acuiti outlines the state of adoption, key barriers, and forward-looking trends, based on a Q1 2025 survey of 85 institutional participants including banks, brokers, asset managers, and trading firms.
Although only 4% of surveyed firms are actively trading tokenised gold derivatives, 86% expressed interest or intent to explore them within the next 12 months. The enthusiasm is led by digital-native firms, with 83% likely to trade tokenised gold futures and options by early 2026. Among these firms, 75% described themselves as “very familiar” with tokenised gold, in stark contrast to the 43% of traditional finance respondents who admitted no familiarity at all.
Liquidity and regulatory clarity were consistently ranked as the top two prerequisites for broader adoption. For firms not yet trading digital assets, counterparty risk was also a major consideration. Notably, the appointment of a pro-crypto SEC director and informal White House backing for tokenisation initiatives has improved sentiment, particularly in the United States.
Rising trading volumes further reflect this growing momentum. Deribit reported $1.39 billion in notional volume traded in the PAXG_USDC pair alone up to March 2025. This represents the beginning of a listed market for tokenised gold, anchored by Paxos’ Pax Gold token, which is backed 1:1 by LBMA good delivery gold.
The perceived benefits of tokenised gold differ between digital asset firms and traditional finance. Among crypto-native respondents, 70% believe tokenised gold will enhance price discovery, and 76% see gains in trading efficiency through faster settlement and automation. In contrast, only 13% of TradFi firms agreed on the price transparency point, and just 22% on efficiency gains.
Use cases already include staking for yield, collateralizing synthetic dollar loans, and participating in DeFi liquidity pools. Deribit’s introduction of tokenised gold futures and options was highlighted as a step toward bridging DeFi with institutional markets.
Despite optimism, substantial barriers remain. Regulatory uncertainty was cited as a “critical challenge” by 64% of respondents, while 66% flagged liquidity limitations. Only 5% identified technological integration as a significant issue, suggesting that infrastructure readiness is less of a concern than trust, standardisation, and regulatory acceptance.
The fragmentation of tokenised gold products is another hurdle. Differences in issuer, redemption processes, and collateral backing hinder broader uptake. The report suggests standardised contracts and benchmarks could be key to unlocking institutional participation.
Beyond trading, tokenised gold is gaining traction as collateral. While just 4% of firms actively use tokenised real-world assets (RWAs) in collateral management, 25% are considering it and 61% are interested in exploring it. Among RWAs, commodities were the most favored category (69%), with precious metals, especially gold, selected by 89% as most suited for tokenisation.
The main perceived benefits of tokenised RWA collateral include faster settlement times, increased liquidity and flexibility, and enhanced transparency. Respondents also pointed to the potential for reduced counterparty risk and greater diversification of collateral pools.
The report concludes that tokenised gold is unlikely to replace traditional gold products but will serve as a complementary tool, particularly in the derivatives and collateral markets. With early adoption concentrated among crypto-native institutions, broader participation from traditional finance is expected as regulatory frameworks solidify.
As Acuiti notes, restrictions on holding digital assets that typically hinder TradFi involvement do not apply to tokenised gold, making it a unique entry point for more conservative institutions seeking exposure to blockchain-based instruments without navigating the full complexities of crypto.
