Daily Gold Market Report

Growing Blockchain Tokenization of Assets
A Potential Risk to Financial Stability

(USAGOLD – 12/13/2023) Gold prices are flat as the marketplace is quiet just ahead of the end of the FOMC meeting. Gold is trading at $1982.86, up $3.32. Silver is trading at $22.64, down 13 cents. The Bank of England (BOE) has recently raised concerns about the growing trend of asset tokenization on blockchains. The BOE’s Financial Stability report highlights that while banks are increasingly positive about using crypto technologies for tokenizing money and real-world assets, this rise in asset tokenization could lead to greater systemic risks in the financial environment. “Tokenization, the process of issuing a digital representation of an asset, is a growing part of the crypto ecosystem and is forecast to become a $10 trillion market by 2030, according to asset management company 21.co,” reported by CoinDesk. These risks include increased interconnectedness between crypto and traditional financial markets and direct exposure of systemic institutions. Although the current risks are limited, the BOE emphasizes the need for continuous monitoring and global cooperation in regulation to manage potential cross-border spillovers and market fragmentation.