Blockchain Research Lab Report Predicts Tokenized Gold Could Disrupt Traditional Gold Markets

As per Bitcoin.com, a recent report by the Blockchain Research Lab suggests that the rise of tokenized gold could destabilize the current leveraged paper gold market. The report argues that as demand for physical gold increases, traditional gold trading platforms, which operate on a fractional reserve system, may struggle to meet delivery demands, potentially leading to a liquidity crisis. Ingo Fiedler, co-founder of the lab, highlights that tokenized gold products like Tether’s XAUt offer trading and security advantages that could shift investor preferences away from legacy systems. Fiedler notes that central bank accumulation and repatriation have already weakened the unallocated bullion banking model, and tokenization may accelerate this trend. Analysts warn that the transition could be disruptive due to the high leverage in current gold markets.