The digital gold sector is positioning itself to capture a massive wave of untapped capital, with research suggesting the market could eventually unlock up to US$700bn in latent demand. A joint report from the World Gold Council and Boston Consulting Group indicates that while the current market is valued between US$45bn and US$55bn, significant barriers currently prevent widespread institutional and retail adoption. The study highlights a massive appetite among potential users, noting that nearly nine in ten surveyed individuals would consider digital gold if specific structural conditions were met. This potential expansion is not merely a redistribution of existing assets but a mechanism to bring entirely new participants into the broader gold ecosystem.
Tokenised Gold Growth and Market Projections
The report identifies a rapid acceleration in tokenised gold, a specific segment of the digital gold market that has grown fivefold to approximately US$6bn since late 2024. This momentum is evidenced by cumulative spot trading volumes in tokenised gold, which exceeded US$90bn in the first quarter of 2026—a figure that already surpasses the total volume recorded for the entirety of 2025. Looking toward the next decade, the World Gold Council and Boston Consulting Group present two primary growth trajectories. The base case scenario projects the digital gold market will grow at an annual rate of roughly 27%, reaching between US$160bn and US$170bn by 2031. However, if existing barriers to entry are dismantled more aggressively, the market could reach a higher valuation of US$270bn to US$280bn within the same five-year window. This growth is increasingly driven by younger demographics; awareness of digital gold stands at 50% among 25–34-year-olds, compared to just 23% for those aged 55 and older.
Addressing Structural Barriers to Scale
To realize the projected US$700bn opportunity, the report argues that the industry must solve for four critical friction points: trust, access, utility, and cost. Trust is identified as the primary "swing factor," with investors demanding stronger consumer protections, transparent proof of backing, and clearer regulatory frameworks. Access remains a significant hurdle, though the report points to successful models in China, India, and Indonesia. In these markets, where digital gold is integrated into super-apps, payment platforms, and banking apps, investor holdings are up to seven times higher than in less mature markets. The World Gold Council is looking toward "Gold as a Service" to provide the necessary shared infrastructure, aiming to assist issuers in managing sourcing, custody, and compliance. Crucially, the research suggests digital gold serves as a gateway to traditional assets; 52% of current digital gold investors held no gold prior to their first purchase, and 92% of those individuals have since acquired other forms of gold. This suggests that solving for digital infrastructure could inject approximately US$95bn of genuinely new demand into the global gold market by 2031.
Key Takeaways
- The digital gold market could reach a latent demand of US$700bn if current adoption barriers are removed.
- Tokenised gold trading volumes in Q1 2026 exceeded US$90bn, surpassing the total volume of 2025.
- Digital gold acts as a market entry point, with 92% of digital-first gold investors subsequently purchasing other gold forms.
FinanceInsyte's Take
In our view, the transition of gold from a physical commodity to a tokenised digital asset represents a fundamental shift in financial infrastructure rather than a mere product evolution. The data suggests that the "digital gold" opportunity is less about the asset itself and more about the distribution layer. The massive disparity in adoption between integrated "super-app" markets and less mature regions signals that liquidity follows accessibility. For institutional players and fintech providers, the strategic imperative is not just offering gold, but building the "Gold as a Service" rails that solve for custody and regulatory compliance. If the industry can successfully standardize these digital frameworks, we are looking at a significant expansion of the total addressable market for gold, driven by a younger, digitally-native investor class that views tokenised assets as a primary entry point to wealth preservation.
Questions & Answers
How much new demand could digital gold inject into the broader gold market?
The report estimates that even accounting for movement between existing products, the digital gold transition could generate approximately US$95bn of genuinely new demand for gold by 2031.
What specific infrastructure is being proposed to help issuers scale?
The World Gold Council is highlighting "Gold as a Service" as a shared infrastructure model designed to help issuers manage sourcing, custody, and compliance capabilities more efficiently.
Why is the demographic shift significant for digital gold adoption?
Demographic data shows a clear generational divide, with 50% awareness among 25–34-year-olds compared to 23% among those aged 55 and over, suggesting that long-term growth is heavily linked to younger, digitally-native cohorts.
What are the primary drivers of the current growth in tokenised gold?
Growth is being driven by a broader digital transformation in financial markets and the increasing mainstreaming of tokenised investment products, evidenced by tokenised gold growing fivefold to US$6bn since late 2024.
Source: World Gold Council
