The best-performing asset of 2025 was neither Bitcoin nor Ethereum, but gold. Over the year, gold gained 56%, while Bitcoin lost around 19%. More participants in the crypto market are recognizing that gold deserves a place in an investment portfolio, and tokenization is making access to it significantly easier.
“Gold is a proven store of value. But we want to rethink it for the 21st century,” said Gold Token S.A. CEO Kurt Hemecker.
The company has developed DGLD, a token that gives investors a legally enforceable claim to physical gold in digital form.
The Swiss company provides its blockchain infrastructure to trading provider MKS PAMP, which fully acquired the startup in November last year. Unlike ETFs or precious metals certificates, DGLD users receive direct ownership rights to gold. Each token represents one troy ounce of 999.9 fine gold, while physical delivery is available starting from just one gram. Custody is carried out in Switzerland and is regularly audited, including allocation to specific bars.
Where the liquidity comes from
The token is traded via Aerodrome, the leading decentralized exchange on Base. Liquidity provision is handled by Arrakis Finance. The main goal is to keep deviation from the spot gold price to a minimum and ensure stable execution. Users trade the token similarly to traditional financial instruments, but entirely on-chain.
With its launch on Base, the project gains access to an audience of more than 8 million monthly active users. The team is also working on integrations with major DeFi protocols such as Aave, Morpho, and Curve to expand the token’s use cases.
Competition in the market
DGLD is not the only gold-backed stablecoin on the market. Its main competitors are Tether Gold (XAUT) and Pax Gold (PAXG). XAUT has a market capitalization of around $2.6 billion, while PAXG stands at $2.4 billion. By comparison, DGLD was valued at around $7.6 million shortly after launch, according to CoinGecko data.
Nevertheless, the company’s management is confident in the project’s competitiveness. According to Hemecker, the company’s advantage lies in its deep expertise in the gold industry and its integration into the blockchain ecosystem. Unlike US-based solutions, the Swiss legal system provides stronger protection of token holders’ rights, including the option to convert holdings into physical gold.
Gold and Bitcoin are not rivals
At the same time, gold and Bitcoin do not exclude each other in an investment portfolio. “Bitcoin offers growth potential and a powerful narrative, while gold provides stability and time-tested value,” Hemecker said. In his view, both assets serve different functions and can complement each other effectively.
