Asset Tokenization in Financial Markets 2025

Contents30 TABLE 3 Comparison of gold investment vehiclesTokenized assets MODEL Physical bars and coins Vaulted physical gold Gold contracts (futures) Gold ETFs Gold-backed tokensTangible ownership of gold bars or coins purchased from dealers, mints or secondary markets. Investor owns allocated or unallocated gold stored in vaults. They receive a claim/ certificate rather than holding metal. Standardized contracts to buy/sell gold on a set future date, traded on regulated commodity exchanges. ETFs that track the gold price and usually hold physical gold or futures contracts. Digital tokens on a programmable ledger that represent a claim on physical gold stored by a custodian.— High storage and security costs — Limited liquidity — High spreads — No direct ownership — High minimum investments — Custody, redemption fees — No direct exposure — Settlement cycle-dependent — Reliance on custodians — Liquidation depends on exchanges — Inaccessible for those in regions with underdeveloped financial infrastructures — Supply-chain challenges for physical redemption — Potential for price dislocation during weekend trading — Platform and custodian risk — Supply-chain challenges for physical redemption— Direct exposure to tangible asset — Minimal to no counterparty risk — Professional storage and security — High liquidity and trading availability — No storage or security costs — Highly liquid and ease of trading — Low transaction costs — Transparent pricing — Enables creative investment strategies, such as leveraging gold exposure through derivatives or use of collateral — Fractionalized and easily accessible — Continuous trading availability — Traceability and verifiability — Instant and atomic settlementDESCRIPTION ADVANTAGES TRADE-OFFS