Tokenized gold is not about changing gold. It is about changing how we own, transfer, and verify it.
For thousands of years, gold has endured because it combines scarcity, durability, and universal recognition. Those properties will not change in 2026 or beyond. What is changing is the infrastructure around gold.
Platforms such as T-Gold and Paxos Gold (PAXG) show how fully backed physical gold can now be represented digitally—without turning it into paper promises or abstractions. The gold remains vaulted and insured. Ownership moves digitally.
This is not a revolution. It is an upgrade.
Tokenization separates custody from ownership transfer, reducing friction while preserving asset integrity. That is why gold is emerging as the benchmark for real-world asset tokenization—and why institutions are paying attention.
Gold remains gold. What changes is how efficiently it can participate in a digital financial system.
This article is part of an ongoing weekly series examining the tokenization of precious metals—covering custody, standards, regulation, issuer structure, settlement infrastructure, and market design. The series is published on BlockchainAIForum and LinkedIn and is among the few sustained, multi-metal editorial projects focused on tokenized metals as financial infrastructure rather than product promotion.
Dating back thousands of years, well before the ancient Roman Empire, gold has maintained its role as a store of value. That’s impressive. That begs the question: what properties does gold have that allow it to endure while paper money always fails? The answer is—gold combines scarcity, durability, and universal recognition.
In 2026, and beyond, gold’s properties won’t change—of that I am sure. Nevertheless, major change is afoot—of that I am sure also. Am I contradicting myself? Not at all. The evolution of gold in 2026, and beyond, will be the manner and infrastructure used to own, transfer, and verify it—of that I am confident also.
As discussed in Week One, tokenization does not alter the nature of an asset—it changes how ownership is represented and transferred. It’s an update, not a revolution. In other words, tokenized gold applies all the same properties to fully backed physical gold, allowing it to function within modern digital financial systems without losing its physical foundation.
Tokenized Gold in Practice: T-Gold
Tokenized gold is no longer theoretical. Platforms such as T-Gold (by Peter Schiff) illustrate how this model works in practice. T-Gold uses blockchain technology (Ethereum) to digitally represent ownership of fully allocated physical gold.
On T-Gold, a client can purchase tokenized gold through the digital platform. Each token represents a defined quantity of physical, investment-grade gold held in professional, insured vaults. The gold remains stationary; ownership changes are recorded digitally. This distinction mirrors a core theme from Week One: custody and ownership do not need to move together. The token is not a derivative or a paper promise. It represents ownership of allocated gold, expressed through a digital record.
In practical terms, T-Gold allows clients to:
Acquire physical gold without handling or transport
Hold gold in divisible digital units
Transfer ownership efficiently
Retain the option of physical redemption, subject to platform terms
The result is gold ownership that combines physical backing with digital efficiency. Point on the scoreboard!
A Second Reference Point: Paxos Gold (PAXG)
Paxos Gold (PAXG) provides a second, widely recognized example of institutional-grade tokenized gold. Paxos decided to go with the most used layer one blockchain—Ethereum.
Each PAXG token represents one fine troy ounce of gold, allocated to specific London Good Delivery bars stored in LBMA-approved vaults. Token holders can verify the serial numbers of the bars backing their tokens and, under defined conditions, redeem tokens for physical metal. Trust and verify!
As outlined in Week One, transparency and auditability are non-negotiable requirements for credible real-world asset tokenization. PAXG demonstrates how those requirements are implemented in practice through allocation, reporting, and regulated custody.
Why Traditional Gold Ownership Is Operationally Limited
Physical gold ownership is risky. With physical ownership, a multitude of weak points are introduced. For example, you could have disasters in storage, insurance, security, and transport. That’s why I can’t imagine storing gold at home.
Paper gold products, on the other hand, reduce some frictions—but at what costs? With paper you have counterparty risk, opacity, and a lack of direct claims on specific bars.
Is there a solution to the dilemma? Yes, tokenization.
Why Blockchain Fits Gold
Tokenization, as framed in Week One, separates physical custody from ownership transfer. Gold remains physical; ownership becomes digital. This separation reduces friction without weakening asset integrity. A perfect solution. Moreover, blockchain systems provide verifiable ownership records, fine-grained divisibility, near-instant settlement, and cross-border transferability. These characteristics align closely with the functional goals described in Week One for modernizing hard assets without financial abstraction.
Applied to gold, blockchain improves how ownership is recorded and transferred—nothing more, and nothing less, at a reasonable price. Winner!
Why Gold Leads Tokenized Hard Assets
Gold is emerging as the lead tokenized hard asset. It’s not hard to understand why if you consider what I explained in Week One—gold has global acceptance, deep liquidity, high value density, mature custody infrastructure, and established legal treatment. T-Gold and Paxos Gold demonstrate the broader principle: blockchain can enhance hard assets without turning them into abstractions.
Could others follow? Sure. Over the course of 2026, I will cover the other possible candidates, including silver, copper, or farmland. Gold, rightly, is the pioneer—but others will most likely trail not far behind.
Is Big Money Open to Tokenization
BlackRock Asset Management and Franklin Templeton are tokenizing financial assets in record volume. In fact, BlackRock CEO, Larry Fink, has spoken openly about the tokenization of all assets. Therefore, why doubt that tokenization of gold is not inevitable? Already, we see tokenized gold is increasingly used within institutional and regulated environments, including digital custody platforms, on-chain settlement systems, collateral frameworks, and portfolio allocation tools. Basically, tokenization is evolving as infrastructure, not disruption. Tokenized gold improves efficiency while remaining compatible with existing financial systems. Great combo!
Due Diligence Never Goes Out of Style
Tokenization does not eliminate risk. Custodian quality, vault jurisdiction, audit transparency, legal enforceability of redemption rights, and blockchain governance all remain critical considerations. These risks align with the asset-layer framework introduced in Week One: weaknesses in the physical, legal, or digital layer undermine the entire structure.
Conclusion
As this series continues, the same framework introduced in Week One, and reinforced here in Week Two, will be applied to silver, copper, and other metals. However, I started with gold as it remains the benchmark—the asset that shows how traditional value can function in a digital system. Gold remains unchanged. What changes is how ownership is recorded and transferred. Technology enhances asset clarity, a necessity in today’s world!
Until next time,
Yogi Nelson
Selected Sources
This article is part of an ongoing weekly series examining the tokenization of precious metals—covering custody, standards, regulation, issuer structure, settlement infrastructure, and market design. The series is published on BlockchainAIForum and LinkedIn and is among the few sustained, multi-metal editorial projects focused on tokenized metals as financial infrastructure rather than product promotion.
Tokenized metals sound straightforward: you acquire a digital token representing gold or silver, and you redeem it for physical bullion when desired. In practice, redemption is absolutely possible—but it is not universal, instantaneous, or frictionless. No way! Redemption sits at the intersection of blockchain mechanics, professional vaulting, compliance obligations, and real-world logistics.
This article explains how redemption typically works, step by step, and where nuance matters. It also examines how different tokenized metal issuers approach redemption in practice. The issuer examples below are listed in alphabetical order.
Why Redemption Exists (and Why It Matters)
Redemption is the ultimate trust test. If a tokenized metal product cannot be converted into physical bullion through a clear, enforceable process, the token may still track price—but it begins to resemble synthetic exposure rather than ownership.
Even if most holders never redeem, the existence of redemption:
Anchors the token to physical reality
Disciplines issuers to maintain reserves and procedures
Reduces the risk of “paper gold” problems migrating into token form
Redemption answers one essential question: Can digital ownership be converted into physical control under real-world rules?
Before You Redeem: What to Confirm Up Front (and How to Confirm It)
This is the due diligence section. Most redemption headaches come from skipping these checks.
1) Allocated vs Unallocated
Do not assume “backed by gold” means allocated. Here’s how to confirm it:
Read the issuer’s legal terms, not just the marketing page. Look for explicit language such as “allocated,” “segregated,” “specific bars,” or “direct ownership interest in physical bullion.”
Look for bar list language: credible allocated systems often publish (or can provide) bar lists with identifiers such as refiner, serial number, weight, and purity.
Confirm whether the metal is on the custodian’s balance sheet. Unallocated structures often operate like a claim on a pool. Allocated structures generally aim to be bankruptcy-remote through custody/bailment frameworks.
A practical rule: if you cannot find any clarity about bar-level identification or allocation, assume it may be unallocated until proven otherwise.
2) Custodian Quality: How to Evaluate
Custody is the center of gravity in tokenized metals. Assess the custodian using the same mindset institutions use:
Reputation and specialization: Is the custodian a recognized bullion vault operator or a generic storage provider?
Jurisdiction: Where is the vault located? Jurisdiction affects legal enforceability, bankruptcy treatment, and dispute remedies.
Audit access and reporting: Does the custodian support third-party audits and bar-list reconciliation?
Insurance coverage clarity: Is there clear documentation that the stored bullion is insured, by whom, and for what categories of loss?
High-quality custody is boring by design. It should feel procedural, controlled, and document-heavy. If custody feels vague, that is a signal.
3) Compliance Requirements
Compliance can surprise crypto-native users. It should not. You are redeeming a high-value physical asset. Typical compliance requirements include:
KYC (Know Your Customer): verifying identity (government ID, address verification, sometimes proof-of-funds).
AML (Anti-Money Laundering): issuer review of transactions to ensure the redemption is not linked to illicit activity.
Sanctions screening: confirming the person and destination are not prohibited.
Shipping restrictions: some jurisdictions have import rules or restrictions on precious metals shipments.
How to stay compliant:
Use your own verified account; do not “redeem for a friend.”
Keep transaction records and invoices.
Do not route tokens through questionable mixers or obscure hops right before redemption.
Ensure the delivery destination is legally permissible (customs and duties matter).
Compliance is not there to annoy you; it is there because issuers that ignore it do not survive.
The Step-By-Step Redemption Process
Step 1: Choose Your Redemption Outcome
Most issuers support one or more of the following:
A) Insured Delivery
This is the most intuitive option: bullion arrives at your address.
But “insured delivery” is a chain of real-world responsibilities:
The issuer or logistics partner packages bullion using tamper-evident procedures.
A carrier transports it under insured conditions (insurance may be carried by the vault, carrier, issuer, or third-party policy depending on the arrangement).
Delivery often requires signature, ID verification, or secure drop protocols.
Costs usually include:
handling/processing fees
shipping fees
insurance premiums
sometimes fabrication fees if the redemption requires specific minted products
Important nuance: insured does not mean “risk-free.” Insurance coverage has definitions and exclusions. You should know when liability shifts (more on that in Step 9).
B) Vault Pickup
Vault pickup can reduce shipping complexity and cost, but it introduces operational burden:
You may need a scheduled appointment and identity verification at the vault.
Some vaults require specific authorization letters from the issuer.
There may be restrictions on how bullion can be transported out.
Vault pickup is best for:
those traveling near the vault
larger redemptions where shipping costs are significant
individuals who prefer to control transport
It also introduces personal security considerations. Leaving a vault with bullion is not a theoretical risk. It is a real-world one.
C) Conversion to an Allocated Vault Account
This is often overlooked. In many systems, “redemption” can mean converting your token claim into a direct allocated vault holding without shipping. This is popular among:
institutions
high-net-worth holders
anyone who wants ownership clarity without delivery risk
Step 2: Confirm Token Eligibility and Network (Canonical vs Wrapped Tokens)
This step avoids a common and painful mistake.
A canonical token is the issuer’s “official” token contract that represents the underlying metal according to the issuer’s terms.
A wrapped token is a derivative representation issued by another protocol or bridge. It may track the canonical token, but it is not necessarily redeemable by the issuer.
Example conceptually:
You might hold “wrapped XAUT” on a DeFi platform.
The issuer may only redeem the original XAUT held in eligible form.
Practical takeaway: redemption almost always requires you to hold the canonical token in a wallet/account format the issuer can recognize.
Step 3: Open or Verify a Redemption Account
Expect identity verification. Even if you acquired tokens anonymously, physical delivery forces compliance.
Step 4: Request a Redemption Quote
Before you select bars vs coins, the issuer typically needs:
your verified identity status
your destination country/state
your preferred delivery method
your redemption quantity
whether you want specific formats
Then you receive:
an itemized fee estimate
available product formats
processing timeline
terms of risk transfer and insurance
This is effectively your “term sheet” for physical settlement. Read it like one.
Only after that quote phase do you select:
bar vs coin format
weight sizes
delivery vs pickup option
Step 5: Lock the Redemption Order
Pricing may be locked at:
the moment you confirm the quote, or
the moment tokens are received, or
the moment the bullion leaves the vault
This matters in volatile markets.
Step 6: Transfer or Retire Tokens
Redemption requires that the digital claim be removed from circulation in a controlled way.
Mechanically, one of three models is used:
Transfer-to-issuer model
Send tokens to an issuer-controlled redemption address.
Issuer confirms receipt on-chain.
Issuer later burns/locks/marks tokens as redeemed internally.
Smart-contract burn/lock model
Send tokens to a contract that programmatically locks or burns them.
The contract emits an event that triggers off-chain fulfillment.
Partner/dealer model
Transfer tokens to an authorized dealer or partner.
The partner executes redemption through its custody channels.
Why this matters: the issuer must ensure redeemed tokens cannot be resold while physical bullion is being delivered. That is the core integrity requirement.
Step 7: Off-Chain Verification and Reserve Reconciliation
Once tokens are received/retired, the issuer must reconcile:
token supply changes
reserve records
custody documentation
internal controls
This is where proof-of-reserves discipline becomes operational. In other words, reserve verification stops being a periodic report and becomes an active process that must hold up under transaction pressure.
A serious issuer must be able to show, in operational terms:
which inventory is being released
how it matches allocation records
how token supply changes reflect the release
who approved and documented the transaction
If this step is weak, redemption becomes the moment where a system breaks.
Step 8: Picking, Fabrication, and Packing
If you redeem for a standard bar that already exists in inventory, the process may be “pick and pack.”
If you redeem for coins or specific branded bars:
metal may need to be fabricated (minted)
the product may require assay verification
packaging must preserve chain-of-custody
serial documentation may be generated or confirmed
This is why minimum redemption sizes exist. Logistics and fabrication do not scale down smoothly. The hidden truth: redemption is often less about blockchain and more about inventory management.
Step 9: Delivery or Vault Pickup
When I say “risk transfers from issuer to holder,” I mean there is a contractual moment when liability shifts. For delivery, that moment might be:
when the vault hands the package to the carrier
when the carrier confirms delivery
when you sign for receipt
The issuer’s terms should specify:
who bears risk in transit
what insurance covers
how claims are handled
what happens if delivery fails
For pickup, risk may transfer:
the moment the vault releases the bullion to you
This is not fine print trivia. It determines who eats the loss in a rare but real adverse event.
Step 10: Final Documentation
Keep records:
redemption confirmations
invoices
shipping docs
serial/bar docs (if provided)
These can matter for tax, insurance, resale, and audit questions later.
Real-World Issuer Examples (Alphabetical Order; Not Ranked)
CACHE Gold (CGT): CACHE emphasizes transparency, audits, and bar-level visibility. Redemption is conventional, structured, and logistics-driven.
Comtech Gold: Comtech’s model leans institutional and commerce-oriented. Redemption typically aligns with regulated commodity settlement pathways, not retail convenience.
Kinesis (KAU/KAG): Kinesis integrates redemption into a broader “metals as money” system. Redemption exists, but the design emphasizes circulation and settlement within the ecosystem.
Paxos Gold (PAXG): PAXG focuses on disciplined custody, formal procedures, and regulatory posture. Redemption is strong but not designed for casual users.
T-Gold (SchiffGold): T-Gold uses tokenization as a modern wrapper around traditional bullion acquisition and custody workflows. Redemption mirrors bullion reality, not crypto convenience.
Tether Gold (XAUT): XAUT is widely distributed and liquid; physical redemption exists but generally favors larger holders and structured processes.
From a compliance perspective, finality strengthens:
audit trails
demonstrable ownership
controlled custody
clear redemption rights
Institutions do not embrace tokenization because it is modern. They embrace it when it produces cleaner, faster, more verifiable finality than legacy settlement systems.
Final Thought: Redemption Is the Bridge
Tokenized metals do not promise magic. They offer a bridge:
blockchain for ownership transfer
vaults for physical custody
audits for verification
redemption for enforceability
When that bridge is well built, tokenization earns trust.
This article is part of an ongoing weekly series on the tokenization of precious metals, published on BlockchainAIForum and LinkedIn, examining custody, regulation, issuer structure, and settlement infrastructure.
The Tokenization Revolution No One Saw Coming (Except Us)
by Yogi Nelson
For centuries—better said, thousands of years—metals have functioned as the backbone of global trade, monetary systems, industrial expansion, and national security. You want a strong industrial base — you need metals. You want a strong national defense — you need metals. You want to be a world leader in tech — you need metals. You get the picture.
As we commence 2026, the green sprouts of a revolution are emerging. What revolution? Merely the tokenization on the blockchain of the oldest asset class on the planet — that’s all! Gold, silver, platinum, copper, lithium, nickel, cobalt, and even rare earth elements are now entering a transitional phase where ownership, settlement, collateralization, and verification can occur digitally—without compromising the physical integrity or custody of the underlying metal. Finally, a real financial use case for blockchain that doesn’t involve a silly meme coin void of value. But listen, this movement is not a marketing trend. It’s a structural realignment.
It’s true, tokenized metals are still early. However, they are no longer theoretical. Why the claim? Volumes are rising. Institutional interest is accelerating. Regulatory clarity is forming. And underlying technologies—AI, digital twins, satellite monitoring, cryptographic attestations—are modernizing the mining and metals supply chain across its entirety.
Hooked? I am. That’s why I’m proud to publish this first edition of a year-long series designed to help you understand where tokenized metals stand today, how fast they are evolving, and what comes next.
THE TOKENIZED METALS LANDSCAPE 2026
Gold: The First Mover and the Market Leader
Gold was the first major commodity to tokenize and remains by far the largest digital metals market. Gold has become the flagship case study for real-world assets on blockchain. As of early 2026:
– Tokenized gold supply exceeds $1.1–1.3 billion.
– Major issuers maintain audited, on-chain proof-of-reserves.
– Settlement speeds have dropped from days to minutes.
– Gold tokens are increasingly used as collateral in both TradFi and DeFi.
– Sovereign wealth funds and private banks are experimenting with cross-border settlement using tokenized gold.
Silver: The Hybrid Monetary–Industrial Asset
Silver’s tokenized footprint—approaching $200 million—is smaller but growing rapidly. Could silver become the first industrial metal where tokenization gains true operational relevance? If it does, it will be because of:
– Its dual identity as both a monetary metal and an industrial input.
– Volatility that makes it attractive for digital trading.
– Demand for transparent supply chains in solar, electronics, and medical technologies.
Industrial & Energy Metals: The Next Frontier
Lagging behind—but certainly on their way into the tokenization party—are the industrial metals: copper, lithium, nickel, cobalt, graphite, and rare earth elements. Could 2026 be the year industrial metals tokenization shifts from prototypes to production? It’s possible if you consider:
– Blockchain-based EV supply-chain tracking.
– Digital twins of ore bodies.
– On-chain provenance audits.
– Early institutional pilots for tokenized copper and lithium.
WHY TOKENIZED METALS MATTER
Verifiable Physical Backing
Tokenized metals solve longstanding structural problems. A few examples:
– Duplicate or falsified warehouse receipts.
– Fraudulent bars.
– Opaque inventory reporting.
– Slow reconciliation cycles.
Each token represents a precise quantity of metal, which means audits become continuous. Your compliance department will love that. Ownership becomes immutable and transparent. This is not just innovation — it’s risk reduction.
Faster, Global Settlement
Conventional metals markets reflect yesterday’s speed. Today, businesses don’t want 24–72 hours to settle. They want what tokenized metals offer: settlement in minutes, reduced friction, lower operational risk, and far less counterparty exposure.
Interoperability with TradFi and DeFi
Tokenization is what finally lets TradFi and DeFi shake hands and work together. Tokenized metals can function as:
– Collateral.
– Liquidity instruments.
– Components of stable-value portfolios.
– Cross-border settlement tools.
– Programmable assets inside smart contracts.
THE ROLE OF AI AND DIGITAL INFRASTRUCTURE
AI-Driven Discovery and Planning
Until now the focus of this article has been on tokenization. But as the old commercials used to say, “Wait — there’s more.” Combine tokenization with AI and you get advanced:
– Ore detection.
– Geological modeling.
– Predictive maintenance.
– Yield forecasting.
– ESG compliance.
– Mine-safety planning.
Mining is shifting from “drill and hope” to “discover with data.”
Satellite and Sensor-Based Verification
AI closes the trust gap in an industry known for suspicious minds. With remote sensing and IoT devices, metals provenance becomes significantly easier. Why? Because the tech makes metals:
– Traceable.
– Auditable.
– Real-time.
– Fraud-resistant.
REGULATORY MOMENTUM
Functioning markets need clear rules and enforcement. Period. The good news is regulators worldwide are moving toward clearer digital-asset frameworks. Clarity is accelerating adoption — tailwinds now rather than obstacles. Consider:
– The SEC and CFTC refining tokenization guidelines.
– The EU and UK advancing unified RWA standards.
– Asian sovereign funds piloting tokenized metals for FX settlement.
Will the market react favorably to tokenized metals? If tokenization follows the pattern of other assets—and every indicator suggests it will—then yes. Big-time yes. Who is drawn to this emerging market?
– Hedge funds.
– Systematic traders.
– Asset managers.
– Digital-asset allocators.
– Wealth advisors.
Corporations & Treasury
Corporations and treasury teams are also participating in this bullish trend. They are using tokenized metals for:
– Balance-sheet diversification.
– Collateral management.
– Supplier financing.
– Inter-company settlements.
Mining Firms
Mining is an industry begging for modernization. Tokenization delivers part of that modernization. Miners benefit through:
– Lower-cost financing.
– Transparent ESG tracking.
– Real-time inventory visibility.
– Improved supply-chain trust.
– All AI-driven improvements listed earlier.
A STRUCTURAL SHIFT, NOT A TREND
In China, 2026 will be the Year of the Horse. For tokenized metals, 2026 will be the year of tech and AI infrastructure. Horses run fast — tech and AI will enable tokenized metals to run fast for years to come. Expect:
– Gold tokenization becomes mainstream.
– Silver emerges as a hybrid digital–industrial asset.
– Industrial metals advance from pilot to production adoption.
– AI reshapes exploration and operations.
– Regulators provide real structure.
– Institutions embrace digital commodities.
THE JOURNEY AHEAD
Over the next 51 more weeks, this series will explore:
– The mechanics.
– The opportunities.
– The risks.
– The players.
– The economics.
– The geopolitics.
– The technology.
Tokenized metals are entering the global stage. 2026 is the year they become impossible to ignore. I’m glad to have you here for the journey.
Los mercados de materias primas están entrando en una transición estructural. El oro, la plata, el cobre, el litio, el níquel, el cobalto e incluso los elementos de tierras raras están comenzando a migrar hacia la infraestructura de cadena de bloques. Esto no es un eslogan publicitario; es un rediseño lento pero real de cómo funcionan la propiedad, la liquidación y el uso de activos como colateral.
En 2026, lanzar é una serie de 52 semanas en BlockchainAIForum dedicada exclusivamente a los metales tokenizados—donde los activos duros se encuentran con los rieles digitales.
Por Qué Esto Importa Ahora
El oro tokenizado ha superado los $1,000 millones en circulación.
La plata tokenizada se acerca a los $200 millones.
Los metales industriales están en la fila siguiente.
La IA está transformando la exploración, la planificación minera y la visibilidad de las cadenas de suministro.
Los reguladores avanzan hacia marcos más claros para los activos digitales.
Para inversionistas, tesoreros y estrategas, los metales tokenizados combinan:
Respaldo físico verificable
Transparencia y auditabilidad en cadena
Liquidación global más rápida
Interoperabilidad con sistemas TradFi y DeFi
Lo Que Cubrirá Esta Serie
Metales preciosos en cadena (oro, plata, platino, paladio, rodio)
Blockchain & AI Forum 