In volatile markets, RWAs like gold are a lifeline
Stocks have experienced volatility, with investors seeking safe havens like gold. Gold, while a stable asset, does not generate income, prompting a need for yield in decentralized finance (DeFi). Historically, gold's performance is consistent but lacks growth potential. Investors favor US Treasurys and high-yield savings accounts for predictable income. Current tokenized gold offerings, such as those from Tether and Paxos, do not provide yield, limiting their market capitalization. To enhance gold's value, a DeFi ecosystem could enable tokenized gold to be borrowed, lent, and integrated into yield strategies. This evolution could bridge traditional and digital finance, allowing gold to serve as both a store of value and an income-generating asset.
