Tokenised gold gains traction as investors shift during market turmoil

DUBAI 22°CGOLD/FOREXPRAYER TIMESNEWSLETTERSLOGIN GOLD/FOREXDUBAI 22°CPRAYER TIMES BUSINESSBUSINESSBANKING & INSURANCEAVIATIONPROPERTYTAX NEWSCORPORATE TAXANALYSISTRAVEL & TOURISMMARKETSRETAILCORPORATE NEWSTECHAUTO Business / MarketsTokenised gold gains traction as investors shift during market turmoilDigital gold demand rises as investors seek flexibility during uncertainty Dubai: A growing number of investors are shifting toward tokenised gold, drawn by the ability to trade, transfer and manage exposure in real time during periods of heightened market stress. The move has gathered pace through 2026, particularly after the escalation of geopolitical tensions in the Middle East, which pushed gold back into focus as a defensive asset while exposing the limitations of traditional investment channels. Tokenised gold, which represents ownership of physical bullion on blockchain networks, has seen its market size expand beyond $6 billion, tracking the broader rise in gold prices while attracting capital from both crypto-native users and traditional investors. The appeal lies in how tokenised products combine gold’s stability with the flexibility of digital infrastructure. Vincent Chok, Founder and CEO of First Digital, said investors are increasingly looking beyond traditional formats. “Investors are no longer just looking for the stability of gold; they are demanding the liquidity and programmability that only tokenisation can provide, allowing them to hedge risk in real-time, even when traditional exchanges are closed.” Market conditions have reinforced that shift. Gold prices surged sharply at the onset of the conflict, reflecting a renewed safe-haven bid, while tokenised formats allowed investors to react instantly to fast-moving developments. Tokenised gold has also stood out within the broader digital asset ecosystem, where volatility has weighed on many crypto-native projects. Sergej Kunz, Co-founder of 1inch, said the difference comes down to underlying value. “Tokenised gold is backed by an asset that has been rallying, while much of DeFi remains tied to crypto-native risk and sentiment.” In risk-off conditions, capital has rotated toward assets with clearer backing and lower volatility. That dynamic has helped tokenised gold protocols outperform large parts of the decentralised finance market, offering a bridge between traditional safe-haven assets and on-chain accessibility. The rise of tokenised gold reflects a broader shift toward real-world assets moving onto blockchain infrastructure. Kunz said the implications go beyond individual investors. “Tokenised assets could become the preferred format for software, because they are programmable, liquid, and instantly usable across crypto-native infrastructure.” This shift is reshaping how capital flows between traditional finance and digital ecosystems, with tokenised commodities emerging as a key entry point. Institutional appetite is also beginning to form, driven by familiarity with gold and the operational advantages of tokenisation. Chok said the transition is already underway. “Onchain gold replaces the need for physical vaulting and manual settlement with blockchain-based ownership records that can be transferred or redeemed instantly, at any time.” He added that regulatory clarity will play a decisive role, with jurisdictions such as the UAE positioned to attract institutional activity as frameworks develop. Despite the momentum, tokenised gold carries its own set of risks tied to the structure behind each product. Kunz pointed to the importance of verifying how assets are backed. “Investors should look at issuer and custodian risk first, because tokenised gold is only as credible as the legal claim, the reserves, and the redemption process behind it.” Liquidity conditions and regulatory treatment can vary widely across platforms and jurisdictions. The growing adoption of tokenised gold is changing how investors manage risk within digital portfolios. Chok said the shift is already visible. “RWA tokenisation expands that toolkit, giving access to safe-haven assets without requiring investors to exit the onchain ecosystem entirely.” That evolution points to a future in which portfolios blend traditional assets with digital infrastructure, with gold serving as a familiar anchor amid a rapidly changing financial landscape. New rules for trading crypto derivatives in Dubai Dubai gold steadies after sharp March drop Arif Habib Group reshapes Pakistan’s investment future Dubai real estate seen as safe bet during uncertainty