• Contact Us
  • Press Release
Marketcap
Advertise
BitCoinist News
No Result
View All Result
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Technology
    • Investment
    • Regulations
    • All Bitcoin News
  • Altcoins
    • News
    • Ethereum
    • Litecoin
    • Ripple
    • EOS
    • All Altcoin News
  • Technology
    • Blockchain
    • Fintech
    • Security
  • Industry
  • How-To
  • Events
  • Press Release
Presale
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Technology
    • Investment
    • Regulations
    • All Bitcoin News
  • Altcoins
    • News
    • Ethereum
    • Litecoin
    • Ripple
    • EOS
    • All Altcoin News
  • Technology
    • Blockchain
    • Fintech
    • Security
  • Industry
  • How-To
  • Events
  • Press Release
No Result
View All Result
BitCoinist News
No Result
View All Result

In volatile markets, RWAs like gold are a lifeline

May 10, 2025
in Businesses
0 0
0
Home Bitcoin Businesses
Share on FacebookShare on Twitter



Opinion by: Kevin Rusher, founder of RAAC

It’s a volatile world out there. This year, we’ve seen stocks take a wild ride as gold has pumped and crypto has been caught somewhere in the middle. Investors have dumped risk assets and scrambled for safe havens. Gold is leading the charge.

While gold is safe, it is not very hard-working. Unlike cash and treasuries, the yellow metal does not generate income. Now, more than ever, investors need to be able to earn yield on gold — particularly in the decentralized finance (DeFi) sector.

The only way to make money from gold is to buy low and sell high. Most investors don’t tend to buy gold like this. That’s for good reason — over the long term, gold’s performance is typically consistent, if not without a few peaks and troughs here and there, as we have recently seen.

For example, after the 2008 financial crisis, the price of gold soared 148% but stagnated for nearly a decade before the COVID-19 pandemic triggered another rally, and it’s likely we will see gold hold, if not fall from it’s new record high once markets revive. While it remains an excellent hedge, gold’s long-term track record is not a growth story.

Investors prefer US Treasurys or high-yield savings accounts as part of a balanced portfolio. While gold may outperform these assets in uncertain times, it offers a better balance of security and predictable income over the long term. 

The DeFi solution 

This is where DeFi brings innovation to the world’s oldest asset. DeFi can significantly modernize gold investing, offering the speed and transparency of blockchain-based transactions and the ability to earn returns.

Currently, though, most tokenized gold is much the same as holding it in an exchange-traded fund (ETF). Stablecoin giants like Tether and Paxos have launched gold-backed tokens, which they say are fully backed by physical, audited gold reserves, yet offer no yield.

Recent: Bitcoin’s safe-haven appeal grows during trade war uncertainty

Most DeFi investors prefer liquid, tradable assets like cryptocurrencies and stablecoins, which can generate attractive returns. Many would rather, for example, buy Tether’s USDt (USDT) stablecoin and stake it, earning rewards while still maintaining ownership.

Perhaps this is why the market capitalization of gold-backed tokens remains modest. Tether Gold, the world’s most significant gold token, has a market capitalization of just under $835 million, for example, while Paxos Gold sits at around $799 million. Combined, this is equivalent to just 1% of the market cap of USDT. 

Unlocking income from the world’s oldest asset 

To unlock gold’s full potential, we need to take tokenization a step further by creating a DeFi ecosystem where tokenized gold is actively put to work — borrowed, lent and integrated into yield-bearing strategies.

One possibility is for companies such as gold miners is to issue tokenized versions of their reserves that can be turned into stablecoins that can then be staked to earn a yield. Leveraging protocols whose liquidity mechanisms enable the trading of stablecoins and real-world asset (RWA) tokens, holders could take advantage of further yield opportunities throughout the DeFi ecosystem.

Beyond the benefits of yield opportunities, blockchain technology means investors in tokenized gold can benefit from the flexibility of 24-hour trading, near real-time price discovery and near-instant settlement without compromising the stability of the asset. 

The future of gold investing

It is, perhaps, ironic that — just as governments worldwide are starting to put their stamp of approval on digital finance — gold is becoming a highly desirable commodity again. The public’s interest in it will grow as governments essentially ratify digital finance. At the same time, the appetite for gold in these uncertain times will also increase. 

DeFi could bring these trends together and kickstart a natural evolution in gold ownership that provides a solid bridge between traditional and digital finance. While gold inside traditional markets attracts investors looking for stability, DeFi brings opportunities that don’t compromise that stability, as it presents new and unique yield opportunities. 

Gold has captivated humanity for thousands of years. It’s the foundation of myths, the standard of wealth and the ultimate hedge against uncertainty. But in today’s financial world, it needs an upgrade.

Through integrating gold into the DeFi ecosystem, we could unlock its true potential — not just as a store of value but as an income-generating asset. The world’s oldest safe haven asset is finally on the brink of a digital evolution.

Opinion by: Kevin Rusher, founder of RAAC.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.



Source link

Tags: GoldlifelineMarketsRWAsvolatile
Previous Post

UK to become ‘safe harbor’ for crypto with new draft rules — Experts

Next Post

Influence, Infrastructure, and the Future of Finance

Related Posts

Doodles token struggles post-airdrop
Businesses

Doodles token struggles post-airdrop

May 9, 2025
Bitcoin hits 3K but DeFi is a mixed bag: Finance Redefined
Businesses

Bitcoin hits $103K but DeFi is a mixed bag: Finance Redefined

May 9, 2025
Coinbase debuts first 24/7 Bitcoin and Ethereum futures in the US
Businesses

Coinbase debuts first 24/7 Bitcoin and Ethereum futures in the US

May 9, 2025
Gemini to launch crypto derivatives in Europe with new license
Businesses

Gemini to launch crypto derivatives in Europe with new license

May 9, 2025
Taiwan lawmaker calls for Bitcoin reserve at national conference
Businesses

Taiwan lawmaker calls for Bitcoin reserve at national conference

May 9, 2025
Apple makes progress toward its first pair of smart glasses: Report
Businesses

Apple makes progress toward its first pair of smart glasses: Report

May 9, 2025
Next Post
Influence, Infrastructure, and the Future of Finance

Influence, Infrastructure, and the Future of Finance

Best Crypto to Buy Now as UFC Legend Conor McGregor Calls for a Bitcoin Strategic Reserve in Ireland

Best Crypto to Buy Now as UFC Legend Conor McGregor Calls for a Bitcoin Strategic Reserve in Ireland

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

LATEST UPDATE

  • BlackRock Meets With SEC To Discuss Staking, Tokenization, Others
  • Bitcoin now deflationary due to Strategy’s BTC purchases — Analyst
  • XRP, PEPE Rebound Underway, But Cardano and This DeFi Token Look Stronger : Rexas Finance
  • Best Crypto to Buy Now as UFC Legend Conor McGregor Calls for a Bitcoin Strategic Reserve in Ireland
  • Influence, Infrastructure, and the Future of Finance
BitCoinist News

BitCoinist News delivers the latest updates, trends, and insights from the world of cryptocurrency, blockchain, and finance. Stay informed with expert analysis and in-depth coverage on Bitcoin, Ethereum, and emerging digital assets.

BITCOIN

  • News
  • Businesses
  • Technology
  • Investment
  • Regulations

ALTCOIN

  • News
  • Price
  • Ripple
  • Litecoin
  • EOS

CATEGORIES

  • Technology
  • Blockchain
  • Fintech
  • Security
  • Press Release
  • How-To
  • About Us
  • Advertise With Us
  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact Us

Copyright © 2025 Bitcoinist News.
Bitcoinist News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Technology
    • Investment
    • Regulations
    • All Bitcoin News
  • Altcoins
    • News
    • Ethereum
    • Litecoin
    • Ripple
    • EOS
    • All Altcoin News
  • Technology
    • Blockchain
    • Fintech
    • Security
  • Industry
  • How-To
  • Events
  • Press Release

Copyright © 2025 Bitcoinist News.
Bitcoinist News is not responsible for the content of external sites.