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Tang Bo of the Hong Kong University of Science and Technology: Gold tokens can generate interest on-chain, unlike traditional gold ETFs
Svmuu News: Tang Bo, Assistant Dean of the Institute of Finance at the Hong Kong University of Science and Technology, stated that the tokenization of gold is emerging as the most promising sector within the tokenization of real-world assets (RWAs). The value of gold as a safe-haven asset is making a comeback, and tokenization technology will endow this ancient asset with entirely new financial attributes. The tokenization of gold differs from traditional gold ETFs. Gold tokens are certificates backed 1:1 by physical gold, allowing holders to directly withdraw the physical gold from vaults, whereas ETFs are merely certificates of ownership. More importantly, gold tokens can generate interest on the blockchain and further activate gold’s financial attributes through mechanisms such as collateralized lending. (21st Century Business Herald)
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