Tokenized gold, explained.A vault receipt that moves.
A gold token is a claim on physical gold held by a custodian. Usually one token stands for one troy ounce or one gram. The token lets you move and trade that claim on a blockchain, often in small fractions and at any hour.
Reviewed October 19, 2026 · figures from our live data
The short answer
Each gold token is backed by physical gold in a vault, held by the issuer or a custodian. The token is a claim on that gold, not the gold itself.
The key question is whether the gold is allocated, meaning specific bars are set aside for holders, or unallocated, meaning you are a creditor of the issuer.
Most issuers let you redeem for metal or cash, but usually above a minimum size, after KYC and for a fee.
You take on issuer, custodian and smart contract risk on top of the gold price. Audits and published bar lists help you check the backing.
tokenized commodities in our data today
issuers
issuer countries
How gold tokens work
The mechanics are simple. The details decide what you really own.
- 1
Backing
The issuer buys gold, stores it in a vault and mints tokens against it. Common units are one fine troy ounce or one gram per token.
- 2
Allocated gold
Specific bars, identified by serial number, are held for token holders. If the issuer fails, allocated gold should not belong to its creditors.
- 3
Unallocated gold
The issuer owes you gold but does not set aside specific bars. This is cheaper but makes you an unsecured creditor.
- 4
Bar lists
Some issuers let you enter your wallet address and see which bar your tokens are allocated to. This is a useful check.
- 5
Redemption
You can usually redeem for physical bars, coins or cash. Physical delivery tends to need a large minimum, often a whole bar, plus delivery costs.
- 6
Fees
Look for mint and redemption fees, transfer fees built into the contract and storage fees. Some issuers charge storage, others do not.
Gold token vs other ways to hold gold
Each form of gold exposure trades one risk for another.
- 1
Physical bar or coin
No issuer risk, but you handle storage, insurance and resale spreads yourself.
- 2
Gold ETF or ETC
Traded on a stock exchange during market hours through a broker. Regulated as a security, with established custody arrangements.
- 3
Gold token
Trades around the clock and in small fractions, can be used in DeFi, and moves between wallets. Regulation depends on the issuer’s jurisdiction.
- 4
Issuer risk
A gold token is only as good as the issuer and custodian. Check who they are, where the gold sits and which regulator, if any, supervises them.
- 5
Attestations and audits
Look for regular reports from an independent firm confirming the gold held matches the tokens issued. An attestation is weaker than a full audit.
- 6
Market price
On exchanges a gold token can trade slightly above or below the gold price. Large gaps usually mean redemption is hard or trust has dropped.
Questions
Is tokenized gold real gold?+
It is a claim on real gold held by a custodian. Whether specific bars are set aside for you depends on whether the gold is allocated or unallocated.
Can I redeem gold tokens for physical gold?+
Most issuers allow it, but usually only above a minimum amount, after KYC and for a fee. Smaller holdings are usually redeemed for cash or sold on a market.
What is the difference between PAXG and XAUT?+
Both represent one troy ounce of gold per token but come from different issuers, with different regulators, vaults, fees and redemption terms. See our comparison page for details.
Do gold tokens pay yield?+
No. Gold itself pays no income. Any yield comes from lending the token out, which adds credit and smart contract risk.
- Tokenized gold tokens →
- PAXG vs XAUT →
- What happens if a token issuer fails →
- Types of tokenized assets →
This guide explains how these products work and is not investment advice or an offer of any security. Who may buy a product is set by its issuer; check the offering documents before investing.