Gold-Backed Cryptocurrencies Gain Momentum Amid Record Demand for Precious Metals
Investors are flocking to tokenized gold as traditional markets waver and inflation concerns persist. The World Gold Council reports Q1 2024 demand reached 1,206 tonnes—the strongest first quarter since 2016—with blockchain-based gold products capturing growing institutional interest.
This surge reflects a fundamental shift in hedging strategies. Digital gold tokens combine the stability of bullion with blockchain’s efficiency, attracting capital away from physical ETFs and vault storage. Central bank acquisitions continue driving the physical market, while crypto-native investors diversify into compliant, yield-bearing gold equivalents.