World Gold Council Unveils Tokenized Gold Framework as Market Nears $6B with XAUT and PAXG Dominance

New “Gold as a Service” Model Targets Fragmentation While Exchanges Push Yield-Bearing Gold Products

TL;DR

• World Gold Council introduced a tokenized gold framework on March 19, 2026, aiming to standardize a fragmented market
• Tokenized gold sector stands at roughly $6 billion, with XAUT and PAXG controlling about 97% share
• Bybit launched a yield product for tokenized gold and a $1 million campaign amid rising demand for defensive assets

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World Gold Council, working with Boston Consulting Group, released a framework on March 19, 2026, outlining a standardized infrastructure for tokenized gold markets under a model described as “Gold as a Service.” The proposal lays out a shared system connecting custody, token issuance, compliance, reconciliation, and redemption processes, seeking to replace siloed structures where each issuer maintains separate operational stacks. The organization, backed by 29 member mining companies, described its role as a neutral convener bringing together traditional gold stakeholders and crypto-native firms.

Fragmentation remains a defining feature of the tokenized gold market, where existing products operate with independent custody arrangements, audit procedures, and redemption mechanisms. The framework identifies these inefficiencies as limiting interoperability, reducing fungibility across tokens, and complicating entry for new issuers. “The question is no longer whether gold will be digital; it’s how it can participate in modern financial systems without compromising physical integrity,” the report stated, while noting the proposal remains conceptual with no fixed timeline and dependent on regulatory coordination across jurisdictions.

Tokenized gold products, typically backed one-to-one by physical bullion, offer investors digital exposure to gold without requiring storage, though they do not inherently generate yield. Market estimates place the sector at approximately $6 billion in early 2026, following several years of gradual growth. That scale remains small compared with traditional gold vehicles, including the SPDR Gold Shares ETF launched in 2004, which has reached a market size of about $163 billion.

Two assets dominate the sector, with Tether Gold accounting for roughly $2.6 billion and Paxos Gold representing about $2.2 billion. Together, they control approximately 97% of the tokenized gold market. Their underlying reserves are stored in different locations, with Tether Gold held in a Swiss vault described as a former nuclear bunker, while Paxos Gold is backed by bullion stored in London vaults managed by Brink’s. These arrangements reflect the broader lack of shared infrastructure across issuers.

Efforts to introduce standardized infrastructure could reduce barriers for new entrants by removing the need to build full-stack custody and issuance systems independently. Existing issuers face the prospect of competing within a more open ecosystem where baseline standards for audits, transparency, and redemption are aligned across participants. The current market structure has been shaped by early movers building proprietary systems over a development period of roughly five years.

Bybit announced a product called XAUT Earn on March 19, 2026, offering users the ability to generate yield on tokenized gold holdings through flexible staking and fixed-term savings options that provide an annual percentage rate. The product addresses gold’s traditional characteristic as a non-yielding asset, combining price exposure with income generation mechanisms. The launch comes as investors seek defensive assets with yield during periods of volatility in digital asset markets.

Earlier in March 2026, Bybit and Tether introduced a joint campaign titled “Golden Season,” offering more than $1 million in gold-backed rewards through trading incentives, referral programs, and yield pools linked to tokenized gold. The initiative was rolled out during a downturn in crypto markets, with sentiment indicators such as the Fear & Greed Index registering extreme fear levels. “The real test of a platform is not how it performs in bull markets, but how it supports users when markets turn,” the company said.

Bybit has expanded integration of tokenized gold across its platform, including additional trading pairs and savings products, while reporting control of about 15.75% of global trading volume for Tether Gold on centralized exchanges. The company also indicated plans to introduce up to $10 million in additional yield-focused products tied to stablecoins and other real-world assets.

Broader market conditions have supported renewed interest in gold exposure, with prices rising 64% in 2025 amid inflation concerns, geopolitical tensions, and continued central bank accumulation. Tokenized gold has been positioned within digital asset markets as a bridge between traditional finance and decentralized finance, while new structures aim to address the longstanding limitation of gold as an idle asset.

Alternative approaches to generating yield on gold have emerged, including models that lend bullion to jewelers with returns around 2.3% annually, as well as strategies using hedged trading positions to produce approximately 4% returns. These developments coincide with the expansion of real-world asset products within digital markets, where tokenized commodities are increasingly integrated into trading and savings platforms alongside crypto price index tracking tools, crypto price feeds, and coin market cap data systems.

This article has been refined and enhanced by ChatGPT.