Tokenised gold gains DeFi collateral role

• RedStone said tokenised gold is being used more often as collateral in decentralised finance.
• The shift could give DeFi users another asset beyond cryptocurrencies for borrowing and lending.
• RedStone said wider adoption will depend on stronger infrastructure and reliable price data.

RedStone said tokenised gold is becoming a more common form of collateral in decentralised finance (DeFi) as the sector expands beyond cryptocurrencies.

The company said the change comes as more investors look for assets linked to real-world value during periods of market uncertainty.

RedStone said tokenised gold allows users to borrow, lend and trade on blockchain networks while keeping exposure to the price of physical gold.

The company said broader adoption will depend on reliable price feeds, stronger infrastructure and continued growth in tokenised real-world assets.

Tokenised gold represents ownership of physical gold stored by a custodian and recorded on a blockchain.

The wider tokenisation market has expanded to include assets such as government bonds, private credit and commodities alongside gold.