A report by the Blockchain Research Lab indicates that tokenized gold could significantly impact traditional gold markets. The study suggests that as demand for physical gold rises, traditional platforms operating on a fractional reserve basis may face liquidity challenges. Ingo Fiedler, co-founder of the lab, points out that tokenized gold products, such as Tether's XAUt, offer advantages in trading and security, potentially shifting investor preferences.
The report highlights that central bank actions, including accumulation and repatriation, have already weakened the unallocated bullion banking model. The adoption of tokenized gold could further accelerate this trend, posing a risk to the highly leveraged current gold markets. Analysts caution that this transition could be disruptive, given the existing market dynamics.
Tokenized Gold Could Disrupt Traditional Gold Markets, Report Finds
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