Gold, renowned as the primordial store of value, is approaching the $3,000 mark and is currently trading over $2,700, establishing new all-time highs along the way.
As the yellow metal continues to rise, investments may redirect towards Bitcoin, the digital alternative, potentially propelling the world’s leading cryptocurrency above $74,000.
3 Tons of Gold Tokenized
While both gold and Bitcoin possess their own merits, with the former praised for its stability and the latter favored for its liquidity, one investor appears to have an interest in both assets.
A recent report from Arkham, a blockchain intelligence company, indicates that a single wallet contains over $250 million worth of Tether Gold. This tokenized amount is equivalent to about 3 tons in the physical world.
Currently, the identity of the owner of this tokenized gold remains a mystery. Nonetheless, through AI analysis, Arkham surmises that these 3 tons of gold could belong to RhinoFi. Based on on-chain evidence, the layer-2 bridge has facilitated transactions valued over $2.3 billion across more than 48.8 million transfers. It presently bridges 31 chains while connecting over 2 million accounts.
Tether Gold essentially functions as a stablecoin that mirrors the real-world price of gold. As of October 22, there are over 246,520 digitally minted gold tokens on Ethereum. According to Ethplorer, there are 2,618 holders of these tokens, with more than 39,500 transfers recorded.
While it’s unclear if RhinoFi indeed manages nearly 50% of all circulating Tether Gold, the tokenization trend is gaining momentum. The flourishing of USD-backed stablecoins like USDT and USDC and their vast adoption in developing countries indicates their permanence in the market.
BlackRock Optimistic, Over $2.4 Billion of U.S. Treasuries, Bonds Tokenized
The conversion of real-world assets into tokens on public ledgers such as Ethereum or Polygon simplifies the transfer processes and exposure for users. The CEO of BlackRock anticipates that the tokenization sector will reach trillions in value in the coming years.
Coingecko reports that over $7.9 billion worth of assets have been tokenized, with most occurring on Ondo, Pendle, and Mantra. In addition to Tether Gold, other tokenized products include Pax Gold and Quorium.
Besides gold, real estate and U.S. Treasuries have also undergone tokenization. BlackRock, recognized as one of the globe’s largest asset managers, currently operates BUIDL on Ethereum.
According to rwa.xyz data, over $2.4 billion worth of U.S. Treasuries, bonds, and cash equivalents have been tokenized. BlackRock’s BUIDL currently oversees more than $550 million of tokenized treasuries.
Feature image from Pexels, chart from TradingView
