Tokenized gold derivatives are poised for substantial institutional growth, with a new Reuters report as quoted by Hedgeweek. The report, “From Bullion to Blockchain: Digital Gold Derivatives and the Future of Tokenisation,”, has been authored by Acuiti, which highlights that 86% of investors plan to explore these products within the next year.

Still in early adoption, digital asset trading firms are actively engaging, drawn by benefits such as 24/7 trading, reduced transaction costs, and faster settlement. The report highlights a significant underlying interest that suggests considerable growth over the next 12 months. Although only 4% of surveyed institutions are currently active, 83% of digital-native firms plan to trade these products soon, while traditional finance institutions show cautious optimism.

Ross Lancaster, Head of Research at Acuiti, noted that tokenized gold derivatives represent a significant step in financial market evolution, despite challenges like regulatory uncertainty and liquidity constraints.

The report also found varying institutional awareness, with 75% of digital asset firms familiar with tokenized gold compared to only 43% of traditional finance institutions. Liquidity and regulatory clarity are key adoption drivers, with 66% identifying liquidity as a major barrier. Tokenized gold derivatives are largely seen as complementary to traditional instruments, and 89% of respondents believe precious metals are the most suitable category for tokenization as collateral in derivatives trading.

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Source: https://www.hedgeweek.com/tokenised-gold-derivatives-poised-for-growth/