Crypto Biz: Is bullion the true ‘digital gold’?
News Summary
Gold has emerged as one of the best-performing assets in 2025, surging above $3,600 an ounce with a year-to-date gain of about 35%. This rally is attributed to geopolitical uncertainty, record central bank buying, and skepticism over policymakers' ability to control inflation. While Bitcoin is often dubbed “digital gold,” the traditional safe-haven asset is drawing renewed investor attention. US retirement planners can now access tokenized gold through a partnership between Chintai Nexus and SmartGold, allowing IRA-held bullion to be brought on-chain for yield generation via DeFi lending platforms. This tokenization trend is accelerating, with International Precious Metals Bullion Group and Tether's gold-backed stablecoin XAUT also advancing in this space. Decentralized finance (DeFi) lending is gaining institutional traction, with total value locked (TVL) in protocols climbing 72% this year to $127 billion, driven by stablecoins and real-world assets (RWAs). The tokenized RWAs market has expanded to nearly $28 billion, led by tokenized private credit and US Treasury bonds. Figure Technology Solutions is pursuing a US initial public offering (IPO) aiming to raise up to $526 million at a valuation exceeding $4 billion, joining other crypto companies like Gemini and Kraken seeking public listings. Furthermore, Gryphon Digital Mining has finalized its merger with American Bitcoin, a company linked to the sons of US President Donald Trump, with the combined entity trading under the ticker “ABTC.”
Background
In 2025, global economies are navigating a complex landscape marked by persistent geopolitical tensions, uncertainty in major central bank monetary policies, and inflationary pressures exacerbated by widening fiscal deficits. These factors collectively bolster demand for gold as a traditional safe-haven asset, driving its price to new all-time highs. Concurrently, the cryptocurrency sector is undergoing significant evolution. The tokenization of Real-World Assets (RWAs) has emerged as a pivotal application of blockchain technology, aiming to bring traditional financial assets like gold, real estate, and bonds onto the blockchain. This trend is complemented by the growth of Decentralized Finance (DeFi), where platforms offer services like lending, enhancing the utility and liquidity of digital assets. Amidst this maturing market, several crypto-focused companies are seeking to enter traditional capital markets through IPOs, aiming for larger capital raises and broader investor bases. Notably, the sons of former President Donald Trump have also ventured into crypto mining, bringing American Bitcoin into public view through a merger with Gryphon Digital Mining, adding a political and family business dimension to the already complex crypto market.
In-Depth AI Insights
What are the deeper investment implications of gold's robust rally and tokenization trend for the digital gold narrative? - Gold's exceptional performance in 2025, even as Bitcoin is widely promoted as