World Gold Council Proposes Shared Infrastructure to Standardize Tokenized Gold Market

The World Gold Council (WGC), the organization behind the launch of the first US gold-backed ETF in 2004, has unveiled a new framework aimed at transforming the tokenized gold market. Developed in collaboration with Boston Consulting Group, the "Gold as a Service" initiative proposes an open, standardized platform connecting physical gold custody with digital issuance systems — a move that could disrupt a market currently valued at $4.9 billion.

Today, tokenized gold is largely controlled by two players: Tether Gold (XAUT), with a market cap of approximately $2.6 billion, and PAX Gold (PAXG) at around $2.2 billion. Each relies on its own independent custody arrangements — Tether through a Swiss vault and Paxos via London-based Brink's security facilities. While functional, these siloed systems create fragmentation that limits product interoperability and raises the cost of entry for new market participants.

The WGC's proposed platform would consolidate critical backend processes — including custody coordination, compliance, reconciliation, and redemption — into a single shared infrastructure that any issuer could access. Standardized auditing and consistent redemption rights would raise trust and transparency across the entire digital gold ecosystem.

The WGC brings significant credibility to this effort. Its gold ETF, SPDR Gold Shares (GLD), now carries a market cap exceeding $163 billion, demonstrating its ability to scale gold-backed financial products. A WGC-endorsed standard on tokenized gold products could serve as a powerful trust signal for institutional and retail investors alike.

Although the proposal does not directly target existing players, widespread adoption of shared infrastructure would naturally erode the proprietary advantages that Tether and Paxos have built over five years. No implementation timeline has been announced, and real-world success will depend on cross-industry cooperation and regulatory alignment across multiple jurisdictions.