Gold ownership has continuously evolved: it began with physical bullion for absolute custody, then ETFs for market liquidity, and now extends to on-chain tokens for more possibilities. Each step has involved trading one kind of “trust cost” for another.

Gold ETFs arrived in 2004 with the launch of SPDR Gold Shares (GLD), a low-cost, liquid alternative to holding physical bullions. As of mid-August 2025, GLD manages roughly US $104 billion in AUM and trades about 7 million shares per day, cementing its position as the largest gold ETF globally[1]. While ETFs eliminate most of the storage and transportation burdens, they still charge ongoing management and administrative fees, and the trust must periodically sell a portion of the underlying bullion to pay those costs. Those flows, together with expenses, result in a small but measurable tracking difference over time. Physical redemption remains available, but only in large unit sizes (e.g., 100,000 shares ≈ 10,000 troy ounces) and further entails additional security, shipping, and insurance arrangements.

On-chain gold illustrates how tokenization pushes the boundaries of gold markets even further. Matrixdock’s XAUm is backed 1:1 by LBMA-standard gold bars held in audited vaults, with proofs published on-chain. Smart-contract minting, redemption and oracle-driven pricing help reduce reliance on intermediaries, while 24/7 trading across both DEXs and CEXs broadens  market access. The outcome is gold exposure with potentially greater liquidity advantages compared to certain traditional products, plus the benefits of programmability and composability for modern portfolios.

Disclaimer: This content is for informational purposes only and does not constitute investment advice, an offer to sell, or a solicitation to purchase any digital assets. References to gold market trends are provided for general informational purposes only and do not represent, or imply, the performance, risk profile, or suitability of any specific product or token. Availability of any referenced product may be subject to eligibility criteria and jurisdictional restrictions.

[1] State Street Global Advisors. (2025). SPDR Gold Shares (GLD). https://www.ssga.com/us/en/intermediary/etfs/spdr-gold-shares-gld?