Tokenized gold is set to become a pivotal financial primitive by 2026, according to Dr. Lin Chen from the University of Hong Kong. Speaking at the "Crypto Finance Forum" in Hong Kong, Dr. Chen highlighted that the market capitalization of tokenized gold reached $6.1 billion by February 2026, with PAXG and XAUT dominating 95% of the market. Trading volumes surged by 1,550% in 2025, with decentralized exchange turnover hitting $4.4 billion.
Dr. Chen's research underscores tokenized gold's stability during extreme market conditions, maintaining strong ties to spot prices and offering continuous global price discovery. The asset is evolving beyond a "store of value" to a "programmable financial primitive," widely used as collateral in protocols like Aave. Future prospects include tokenizing untapped gold reserves and facilitating cross-border payments via virtual asset cards, addressing traditional gold's liquidity and transport challenges.
Tokenized Gold Emerges as Key Financial Primitive by 2026, Says HKU's Dr. Lin Chen
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