Tokenized gold is gaining momentum as geopolitical uncertainty and rising gold prices weaken trust in fiat-backed assets. Major institutions and sovereign actors are launching or expanding gold-backed tokens. 

This shift suggests tokenized gold may soon move beyond its niche role amd become a credible next-generation, stable, and globally usable digital value.

A Five-Year Flight to Safety

The turbulence of the past few months has reinforced the role of gold as a safe-haven asset. It was only two months ago that the metal’s price hit a record, surpassing $4,000 per ounce. 

This isn’t only a recent phenomenon. Between 2020 and 2025, the price of gold more than doubled, reflecting a wider flight to safety as global markets confronted a pandemic, inflation, wars, sanctions, and persistent geopolitical tensions. 

At the same time, advances in blockchain technology have transformed the use of gold. Tokenization, instant settlement, and 24/7 global liquidity now make a traditionally static asset far more flexible in digital form.

Several developments show how quickly the trend is gaining traction across both crypto and traditional finance.

Institutional Gold Tokens on the Rise

Last month, Swiss metals giant MKS PAMP, one of the world’s largest gold refiners and a major supplier of precious metals to global markets, relaunched DGLD, a gold-backed token designed for institutional investors.

In the crypto space, Tether Gold (XAUt) continues to see steady growth. Pax Gold (PAXG), launched by New York–regulated blockchain firm Paxos, is also expanding. Together, their market caps now exceed $3 billion, making them the most widely used gold-backed digital assets available to the public.

What if "Digital Gold" is really tokenized gold?

$1b to $3b YTD with trillions to go. pic.twitter.com/cJQF7RYkDA

— Emperor Osmo 🐂 🎯 (@Flowslikeosmo) November 28, 2025

Traditional banking players are also testing the waters. HSBC, one of the largest multinational banks and a major custodian of physical gold through its London vaults, is experimenting with its own gold token for clients.

While these digital gold products are still relatively small compared to the market value of gold exchange-traded funds (ETFs), their expansion signals a growing confidence that blockchain-based gold is becoming a credible financial instrument.

In fact, the movement is not even limited to the private sector. 

In November, Kyrgyzstan launched USDKG, the first gold-backed stablecoin pegged to the US dollar. Backed by the country’s national gold reserves, it offers a sanction-resistant tool for cross-border payments and trade. Kyrgyzstan’s approach could also encourage other, larger nations to follow suit. 

Still, some challenges remain. 

Regulators Stay Wary

Gold-backed tokens still have no clear industry standard, which makes it harder for users to compare their reliability. 

Transparency also varies. Some issuers publish regular third-party audits, while others offer limited details about their vaults or redemption processes. Regulations differ widely across countries, adding another layer of uncertainty for consumers and businesses. 

These gaps explain why many governments remain cautious. 

Officials worry that freely circulating gold-backed assets could weaken confidence in national currencies and complicate monetary policy. They also fear that digital gold could facilitate the movement of money outside traditional banking controls.

Even so, momentum is unmistakable. 

If clearer rules and rising geopolitical pressures push the industry forward, tokenized gold could move from the margins to become a core pillar of stable, globally usable digital money.

The post Could Tokenized Gold Become the Next Standard in Stablecoins? appeared first on BeInCrypto.

Two major economies are tightening control over digital currencies just as the US pushes to cement its leadership in the stablecoin sector. Israel is accelerating its digital shekel plans while China continues to expand the digital yuan. 

These moves signal a broader global shift toward sovereign digital money that could challenge the reach and influence of US dollar–based stablecoins.

Israel Tightens Rules, Advances Digital Shekel

Stablecoins have become a central pillar of the digital asset market, moving well beyond their early role as a trading convenience. 

The sector now processes more than $2 trillion in monthly volume and holds a market cap above $310 billion, almost all of it in dollars. That growth has prompted private companies to assume a leading role in operating key components of global payment infrastructure.

As their influence expands, governments are stepping back in. Many are introducing new rules aimed at limiting the reach of USD-linked tokens.

During a recent conference in Tel Aviv, Bank of Israel Governor Amir Yaron stated that the country is preparing to implement much stricter oversight of stablecoins, citing growing concerns over the sector’s concentration.

With most activity dominated by Tether and Circle, he warned that any issue with their reserves or backing could spill into the wider financial system. 

Yaron also noted that stablecoins are now so embedded in global money flows that they can no longer be treated as a niche market, adding that the sector’s scale already rivals that of a mid-tier international bank.

Alongside these warnings, Israel is also accelerating its digital shekel initiative, its proposed central bank digital currency. 

The Bank of Israel recently published a detailed design document outlining user journeys, technical architecture, and key policy considerations. Officials say the project aims to strengthen the country’s payment infrastructure and reduce reliance on private digital assets.

As Israel builds its regulatory and technological framework, China is taking a far more forceful path.

Beijing Shuts Out Stablecoin Influence

China’s central bank has doubled down on its broad crypto ban, working with different government bodies to target stablecoin activity and close remaining loopholes.  Officials say digital assets fuel money laundering and capital flight, and they stress that these tokens carry no legal currency status.

The crackdown is also unfolding alongside the rapid growth of the digital yuan. 

According to Ledger Insights, the People’s Bank of China recently reported that e-CNY transaction volumes nearly doubled in the past 14 months, reaching $2 trillion by September. 

Pilot programs are now operational across major cities, public-sector payment systems, and select commercial routes. This push is embedding the state-issued currency deeper into daily financial activity.

🇨🇳 People's Bank of China announces full integration of its digital cross-border system with ten ASEAN countries and six Middle Eastern countries

This will significantly increase global trade through digital yuan. Many experts believe that figures of up to 38% will be achieved,… pic.twitter.com/bagM1owks8

— Lord Bebo (@MyLordBebo) November 14, 2025

By walling off stablecoins and accelerating the digital yuan, China aims to cut dependence on foreign currency rails, especially those tied to the US dollar. The strategy also helps preserve tight control over data, capital flows, and payment infrastructure.

Together with Israel’s more measured but still sovereignty-driven approach, China’s escalation highlights a clear global shift. 

Major economies are no longer willing to let USD stablecoins define the future of payments. Many are now building or enforcing their own digital systems and challenging the US’s ambitions for stablecoin dominance.

The post Are Israel and China Threatening the US Stablecoin Plan? appeared first on BeInCrypto.