What to Know:
- ATME, a Bahrain-based digital assets exchange, has launched its inaugural tokenized real-world asset, starting with gold-backed tokens.
- Each token represents one kilogram of gold and can be traded or redeemed for physical gold.
- The tokenized gold market is valued at approximately $1.2 billion and ATME intends to broaden its product range to include various asset classes.
ATME, a digital assets exchange licensed by the Central Bank of Bahrain (CBB), stated on March 11 that they have completed their first issuance of tokenized real-world assets (RWA), starting with gold-backed tokens. These tokens, which are available exclusively to accredited investors, represent one kilogram of gold stored under custody. Investors have the option to trade these digital assets on ATME’s secondary market or to redeem them for physical gold. This initiative aims to modernize gold ownership by addressing storage and transportation challenges while utilizing blockchain technology for enhanced efficiency and security.
The exchange indicated plans to expand its offerings to incorporate other asset classes, further integrating blockchain technology into conventional financial systems. ATME’s introduction of tokenized gold aligns with a broader financial market trend, where real-world assets like commodities and funds are increasingly being digitized and made available for trading through blockchain technologies. The overall market for tokenized gold is currently estimated to be around $1.2 billion and is primarily dominated by Paxos-issued PAXG and Tether’s XAUT tokens. Additionally, HSBC also launched a gold token in Hong Kong for retail investors last year, indicating wider adoption.
Gold-backed tokens have recently experienced a surge in interest as gold prices have reached fresh record highs, influenced by a declining dollar, rising trade war concerns, and geopolitical instability.
