Tokenized gold is a digital token on a blockchain that represents ownership of real, physical gold. It typically functions like a stablecoin, but instead of being pegged to the US dollar, its value is tied to the price of gold.
Usually, one unit of tokenized gold corresponds to a specific amount of gold, such as one troy ounce (around 31.1 grams) or even just one gram. The physical gold is securely stored in vaults by a custodian (a company responsible for safeguarding the assets). Because these tokens exist on blockchain networks (such as BSC or Ethereum), holders can transfer them to others, trade them, or use them within financial applications—just like other cryptocurrencies.
Learn more about how tokenized gold works and its advantages in the following article.