Today, gold can no longer only be acquired physically or via traditional financial products, but can also be tokenized on the blockchain - usually on Ethereum. In this model, a provider stores the physical #gold in a vault and issues ERC-20 tokens, which represent a fixed weight such as one ounce or one gram. These tokens can be traded globally, purchased in small denominations, transferred around the clock and used in various financial services within the Ethereum ecosystem.
The best-known examples are PAX Gold (PAXG) and Tether Gold (XAUT), both of which are issued on Ethereum. They make access to gold much more flexible, enable faster transfers and allow trading in smaller units than on traditional markets. Tokenized precious metals outside of gold have so far achieved hardly any significant traction.
