Core Viewpoint - Gold prices are expected to enter a new round of super bullish trends, driven by various factors including the expansion of gold-backed stablecoins and macroeconomic conditions [4][17]. Group 1: Recent Gold Price Trends - Since late August, gold prices have entered a new surge mode, reaching a historical high of $4,392 per ounce on October 17, with a cumulative increase of 10% over the last six trading days and a staggering 30% increase from August 20 to October 16 [6][18]. - The recent surge in gold prices is partly attributed to investor concerns over bad debts disclosed by two U.S. regional banks, which has driven a significant influx of capital into gold as a safe-haven asset [18]. Group 2: Factors Driving Gold Price Increases - The Federal Reserve's decision to cut interest rates on September 17 has been a key driver for the rise in gold prices, confirming previous predictions that gold would rise following such a move [8][19]. - The demand for stablecoins is booming, with projections indicating that global stablecoin transaction volumes could reach $15.6 trillion to $27.6 trillion in 2024, significantly surpassing the transaction volumes of Visa and Mastercard [12]. Group 3: Gold-Backed Stablecoins - The market anticipates substantial growth in gold-backed stablecoins, which are currently small in scale compared to other stablecoins. As of July, the market caps of PAXG and Tether Gold were only $0.9 billion and $0.8 billion, respectively, compared to $161 billion and $64 billion for USDT and USDC [12]. - The core advantages of gold-backed stablecoins stem from gold's scarcity and inflation-hedging properties, which provide stability and a hedge against systemic risks, especially during times of heightened demand for safe-haven assets [13]. Group 4: Long-Term Outlook for Gold Prices - The ongoing strong demand from central banks and stablecoin issuers for gold is expected to provide stable support for long-term gold price increases [18]. - Historical trends indicate that gold prices typically rise when the credibility of the U.S. dollar is undermined, and the current geopolitical tensions and trade frictions are contributing to this dynamic [19]. - The potential for a market shift from high-tech stocks to gold as a safe haven could further drive gold prices upward, especially as the market anticipates a peak in tech valuations [19].

Core Viewpoint - The article discusses the transformation of physical gold into on-chain digital assets through Real World Asset (RWA) products, highlighting its role as a bridge between traditional finance and the digital economy, while exploring the international development models, challenges, and future prospects of gold RWA [2][3]. International Development Models of Gold RWA - The global gold RWA market exhibits diverse development patterns, shaped by the financial infrastructure, regulatory environment, and market characteristics of different countries and regions [5]. - In the United States, the market is driven by strict regulatory frameworks, with the SEC classifying most RWAs as securities, leading to a market-driven model where private innovation precedes regulatory guidelines [6]. - Europe adopts a legislative-led approach, balancing innovation and regulation, with initiatives like DORA and MiCA to standardize crypto and token businesses, fostering an innovation-friendly environment [7]. - Japan employs a pragmatic regulatory strategy, gradually amending laws to create space for gold RWA development, focusing on compliance and risk control rather than rapid innovation [8]. - Hong Kong aims to become an Asian hub for gold RWA through proactive policies, promoting tokenized gold investment products and enhancing its position as a digital financial center [9]. Challenges Facing Gold RWA Development - Gold RWA faces multiple challenges, primarily in regulatory compliance, technical risks, and market acceptance [11]. - Regulatory and compliance challenges include ensuring clear ownership of physical gold, legal recognition of gold RWA, and adherence to various jurisdictional regulations, complicating cross-border transactions [12]. - Technical risks involve ensuring data security, accurate rights mapping on the blockchain, and addressing vulnerabilities in smart contracts and private key management [13]. - Market acceptance is growing, with a compound annual growth rate exceeding 30%, but liquidity remains a significant issue, as the market lacks a robust liquidity structure to support trading activities [15].

Core Viewpoint - The combination of gold and stablecoins has advantages, but future development needs to overcome certain obstacles. If mechanisms are improved, gold-backed stablecoins can serve as a store of value and, under specific conditions, as a means of payment and settlement [1][5]. Group 1: Gold Stablecoin Overview - Gold stablecoins are emerging as a new favorite in the cryptocurrency market, following the popularity of dollar-backed stablecoins. They are cryptocurrencies pegged to gold, sharing characteristics such as value stability and decentralization [2]. - The gold stablecoin market is currently dominated by two main players: Tether's XAUT and Paxos' PAXG, each holding nearly half of the market share. As of June 2025, the market capitalization of gold stablecoins is projected to reach $1.6 billion, accounting for approximately 0.67% of the total stablecoin market [2]. Group 2: Advantages of Gold Stablecoins - Compared to gold ETFs and futures, stablecoins enhance the convenience of gold trading through their decentralized nature: - They eliminate time and space constraints, allowing for global transactions at any time via blockchain technology. - They lower investment barriers by enabling fractional ownership of gold bars, with the ability to split ownership down to six decimal places (approximately 0.02 yuan). - They reduce transaction costs, with low fees (e.g., PAXG charges 0.02%) [3]. Group 3: Challenges Facing Gold Stablecoins - There are three main challenges that gold stablecoins must overcome: - The inherent conflict between the monetary functions of gold and stablecoins. Stablecoins primarily enhance payment and settlement functions, while gold serves more as a store of value, making their combination somewhat forced [4]. - Gold stablecoins have not fully realized their potential for value stability. The low number of holders leads to low trading turnover, shallow market depth, and significant deviations from London gold prices [4]. - There are issues with credit verification that contradict the decentralized and trustless nature of blockchain. Regulatory frameworks for physical collateral-backed stablecoins are still lagging, with existing legislation primarily covering fiat-backed stablecoins, leaving gold stablecoins facing compliance uncertainties [4].

Core Insights - The combination of gold and stablecoins presents advantages, but future development requires overcoming certain obstacles [2][5] - The gold stablecoin market is currently dominated by two main players: Tether's XAUT and Paxos' PAXG, each holding nearly half of the market share [3][4] Market Overview - As of June 2025, the market capitalization of gold stablecoins is projected to reach $1.6 billion, accounting for approximately 0.67% of the total stablecoin market, making it the third-largest category after USD stablecoins and crypto-collateralized stablecoins [3][4] Advantages of Gold Stablecoins - Gold stablecoins enhance the convenience of gold trading due to their decentralized nature, allowing for global transactions at any time [4] - They lower investment barriers by enabling fractional ownership of gold bars, with the ability to split ownership down to six decimal places (approximately 0.02 units) [4] - Transaction costs are reduced, with PAXG charging a minimal fee of 0.002% [4] Challenges Facing Gold Stablecoins - There is a natural conflict between the monetary functions of gold and stablecoins, as stablecoins emphasize payment and settlement, while gold primarily serves as a store of value [5] - Gold stablecoins have not fully realized their value stability attributes, resulting in low trading turnover and shallow market depth [5] - Regulatory uncertainties exist regarding the compliance of gold-backed stablecoins, as current frameworks primarily address fiat-backed stablecoins [5]