Bahrain-Regulated Crypto Exchange Enters $1B Tokenized Gold Market

ATME, a digital belongings alternate licensed by the Central Bank of Bahrain (CBB), mentioned on Tuesday it has accomplished its first tokenized real-world asset (RWA) issuance beginning with gold-backed tokens.

The tokens, obtainable to accredited buyers, every symbolize one kilogram of gold saved in custody, based on the press launch. Investors can commerce these digital belongings on ATME’s secondary market or redeem them for bodily gold. The initiative goals to modernize gold possession by eliminating storage and transportation issues whereas leveraging blockchain for effectivity and safety.

Read extra: Tokenization Allows More Efficient Collateral Transfers, Digital Asset, Euroclear and World Gold Council Found in Pilot Project

“By combining the timeless value of gold with blockchain technology, we are unlocking new ways for investors to access and trade high-value assets,” Alex Lola, CEO of ATME, mentioned in an announcement.

The alternate mentioned it plans to broaden its choices to incorporate different asset lessons, additional integrating blockchain expertise into conventional monetary techniques.

ATME’s tokenized gold providing aligns with a broader pattern in monetary markets the place real-world belongings corresponding to commodities, bonds and funds are more and more being digitized and traded on blockchain rails, a course of also referred to as tokenization. The market of tokenized gold is price round $1.2 billion, dominated by Paxos-issued PAXG and stablecoin issuer Tether’s XAUT tokens, rwa.xyz knowledge exhibits. Global financial institution HSBC additionally launched a gold token in Hong Kong for retail buyers final yr, signaling broader adoption.

Gold-backed tokens loved a resurgence in exercise lately as gold costs hit recent document highs propelled by a weaker greenback, mounting commerce conflict worries and geopolitical turmoil.