Tokenized Gold DeFi Adoption Gap
Despite strong tokenized gold trading volume, low DeFi collateral adoption indicates an adoption gap rather than a technical or liquidity problem
Too little corroboration in the last 3 days to call a trend (5 articles). Watching for it to gain traction.
Still mostly niche and specialist coverage — not yet picked up broadly by mainstream press.
"RedStone's findings suggested tokenized gold was resilient yet faces an infrastructure gap as tokenized real-world assets scale. Only about $63 million of Tether Gold and PAX Gold is used as collateral on Aave v3 and Morpho — just 1.5% of their combined $4.2 billion market cap."
"Despite domestic gold prices being around 60% higher YoY, holders showed limited appetite to sell, preferring to monetise their gold holdings rather than liquidate them, keeping recycled supply 'muted', according to WGC."
"Binance has launched commodity options linked to gold and silver, marking its latest expansion into traditional financial markets through its crypto trading platform. The launch adds commodity derivatives to Binance's product suite, enabling users to trade both crypto and commodity options from a single account."
"Aave processed its largest cluster of XAUT liquidations on March 23 without disruption during a sharp gold sell-off. RedStone presents this as evidence that tokenized bullion can function reliably as DeFi collateral when markets turn fast."
"only about $63 million of XAUT and PAXG is currently posted as collateral on Aave v3 and Morpho—roughly 1.5% of the combined $4.2 billion market capitalization. RedStone frames this as an adoption gap rather than a liquidity or reliability issue."