In volatile markets, RWAs like gold are a lifeline
From Cointelegraph
May 10, 2025 10:00 AM:
Gold has outperformed stocks and crypto in uncertain times, but it doesn’t generate income. DeFi could change that by allowing investors to earn yield on gold through innovative blockchain-based transactions. While tokenized gold exists, it currently offers no returns, unlike stablecoins. The market cap of gold-backed tokens remains modest compared to stablecoins.
To unlock gold’s full potential, DeFi must create an ecosystem where tokenized gold can be actively used to earn yield. Companies could tokenize gold reserves, turning them into stablecoins that can be staked for rewards. Blockchain technology enables 24-hour trading, real-time price discovery, and instant settlement without compromising asset stability.
As governments embrace digital finance, gold is regaining popularity as a safe haven asset. DeFi could bridge traditional and digital finance, offering unique yield opportunities for investors. By integrating gold into DeFi, we can transform it from just a store of value into an income-generating asset. Gold is on the cusp of a digital evolution.
Read more at Cointelegraph: In volatile markets, RWAs like gold are a lifeline