Gold remains a timeless symbol of value, and 2025 has underscored its importance, with prices surging 26% in U.S. dollars in just the first half of the year.

But as geopolitical uncertainty shakes traditional markets and digital assets gain ground, gold is on the brink of transformation. Blockchain, decentralized finance (DeFi), and tokenization are turning it from a static store of value into a dynamic digital instrument, poised to redefine its role in the global financial system.

The World Gold Council’s latest report imagines a future where gold becomes a liquid, fungible, and digitally accessible asset, ready to power the next era of financial markets. With institutional and retail investors demanding greater transparency, accessibility, and innovation, the gold industry faces a pivotal choice: embrace digitalization or risk being left behind.

At the heart of this transformation is the Gold247 program, which aims to modernize gold ownership and trading. Its cornerstone, the Gold Bar Integrity (GBI) database, ensures provenance and ethical sourcing, giving investors confidence that their gold is responsibly mined and refined. Wholesale Digital Gold then builds on this foundation, offering a legally robust framework for fractional ownership, settlement, and collateralization.

The Standard Gold Unit (SGU) represents a bold leap: a global standard that separates gold’s monetary value from its physical form. By decoupling the digital token from the physical bar, the SGU allows investors to trade, collateralize, or redeem gold anywhere in the world, unlocking unprecedented liquidity.

“For the gold industry, simply digitalizing current practices isn’t enough,” says Simone Ferriani, professor of entrepreneurship and innovation at Bayes Business School. “The real breakthrough will come from redefining the boundaries of innovation.”

Digital gold could supercharge traditional strengths. Investors might instantly collateralize holdings, trade gold across global markets, or leverage atomic settlements. Blockchain traceability ensures provenance and responsible mining, aligning investment with ethical values.

Randy Smallwood, CEO of Wheaton Precious Metals, emphasizes, “In general, just about every ounce of gold that has ever been mined is still being used. It’s as close to 100% recycling as you can get. I think that’s something to be proud of as an industry.”

The tokenization of gold within DeFi ecosystems introduces yield-bearing possibilities, previously impossible in traditional gold markets. Token holders could stake their gold, provide liquidity, or borrow against holdings, unlocking passive income while diversifying portfolios.

Melissa Song, CEO of Bity, cautions, “When you have a yield, you’ll have a certain risk. So, it’s about managing the risk.”

Fractionalized gold funds further democratize access, making gold investment possible for smaller investors globally.

Gold-backed stablecoins and digital monetary systems also hint at a future where gold functions as a currency with real-time yield. Platforms like Kinesis Money demonstrate how gold payments could generate monthly returns without leveraging debt, combining stability with liquidity.

Philipp Pieper, CEO of Swarm Markets, notes, “In this new world of geopolitical separation, there needs to be assets that are outside of influence. Bitcoin is one manifestation of that; obviously gold is a different one.”

Beyond finance, digitalization opens cultural and lifestyle opportunities. Untethering the value of gold from physical items allows jewelry and collectables to generate returns digitally, much like fractionalized art investment. Phygital gold NFTs could merge real-world and virtual ownership, with benefits spanning loyalty programs, gaming, and the metaverse. Scott Lynn, founder of Masterworks, observes that similar fractionalization has unlocked access to high-value art; gold could follow.

Cultural engagement and branded digital platforms could make gold more accessible to younger investors, who increasingly prefer apps and online trading. “If I’m buying it on Revolut, I trust Revolut. Or if I am buying it on Apple, I trust Apple,” says Navin Dsouza, COO of Equiti Group. By leveraging recognizable platforms, gold investment could integrate seamlessly into everyday life.

Underlying all of these innovations are global regulatory frameworks and technology protocols. Crypto legislation like the Markets in Crypto Assets (MiCA) in Europe, the GENIUS Act in the U.S., and Singapore’s digital token regulations provide a blueprint for secure, compliant digital assets. Defining gold as a high-quality liquid asset internationally would further solidify its status and broaden institutional participation.

Nascent technological advancements—AI verification, quantum-safe encryption, and smart contract infrastructure—promise the speed, transparency, and trust necessary for mass adoption. The potential market impact is staggering: the real-world asset (RWA) tokenization market, which includes assets like gold, could expand from $24 billion in 2025 to $18.9 trillion by 2033, according to a joint report by Ripple and Boston Consulting Group.

Digital gold also addresses long-standing limitations: cumbersome custody, lack of yield, and fragmented trading. By integrating physical, digital, and virtual formats, gold could become a multi-functional asset—stable, accessible, and rewarding. Innovations like the SGU, tokenized DeFi products, and phygital NFTs illustrate a future where gold is simultaneously a store of value, an investment vehicle, and a digital cultural asset.

The broader macro environment reinforces this shift. The Great Wealth Transfer will shift $105 trillion to younger, tech-savvy investors over the next two decades, many of whom favor digital-first, alternative investments.

Sustainability concerns are also rising: investors demand proof that assets contribute positively to society and the environment. Blockchain-enabled traceability and philanthropic-linked gold investment could meet this demand, aligning profit with impact.

In short, gold is no longer just a hedge or luxury commodity. Digitalization offers the opportunity to reimagine it as a versatile financial and cultural instrument. Whether through enhanced liquidity, yield generation, or integration into lifestyle and digital ecosystems, the future of gold could be as much about technology as it is about tradition.

The path forward depends on collaboration across regulators, innovators, and the industry itself—a coordinated effort to lay the legal, technical, and operational foundations for a truly digital gold economy.