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TL;DR
Tokenized gold trading has reached a new peak amid growing worries over a potential U.S. government shutdown. Unlike traditional gold exchanges that close overnight and on weekends, tokenized gold markets remain active 24/7—fueling their swift rise.
Article
Digital gold tokens—backed by physical bullion stored in secure vaults—saw daily trading volumes climb to $2.5 billion this week. Investors turned to these always-on platforms as uncertainty about a U.S. government shutdown spurred demand for safe-haven assets.
Conventional gold markets only operate during fixed business hours and halt on weekends and many holidays. Tokenized exchanges, by contrast, enable continuous trading, making them particularly attractive during periods of heightened geopolitical or fiscal tension.
Since January, the total market cap of tokenized gold offerings has more than doubled to about $15 billion. Analysts cite several drivers behind this surge:
• Instant settlement and fractional ownership, lowering entry thresholds for smaller investors
• On-chain reserve proofs and greater transparency, fostering confidence
• Global reach, allowing participation across all time zones
As tokenized gold scales new heights, it’s shedding its image as a niche fintech experiment and emerging as a legitimate alternative to traditional bullion—which even established banks and asset managers are eyeing. With geopolitical risks persisting, traders anticipate tokenized gold’s uninterrupted trading hours and digital convenience will keep fueling its growth.
📊 Market Context & Insight
Gold dynamics in Malaysia are shaped by the ringgit’s strength, Bank Negara Malaysia’s policy stance, inflation trends, and global gold movements. Local demand also reflects cultural customs, jewelry buying habits, and the investment preferences of Malaysian households and enterprises.
💡 What This Means for Malaysian Investors
In Malaysia, gold is widely regarded as a hedge against currency swings, inflation, and global unrest. Investors often diversify using physical gold jewelry, bullion bars, Gold Investment Accounts (GIAs) from banks like Maybank and CIMB, and Bursa Malaysia’s Gold Futures (FGLD). Balancing physical holdings with paper gold can help align investments with long-term objectives.
🔗 Useful Resources
Note: This article was auto-fetched from trusted news sources. For educational purposes only. Please verify with official financial advisors or licensed institutions in Malaysia before making investment decisions.
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