Gold can also "generate income"! #XAUT # Gold Stablecoin

Gold has always been a favored asset class. From a balanced perspective, allocating a certain proportion is definitely not an issue.

The medium- to long-term logic is that the credibility of the US dollar is declining, and central banks around the world are increasing their gold reserves. Their continuous gold purchases provide medium- to long-term support for gold prices.

Gold prices often show wave-like rises. Generally, after a rapid short-term increase, there will be a sharp correction, followed by a period of consolidation, and then a new upward trend. Of course, during this period, key events often stimulate the market, such as a central bank announcement of buying or the amount of gold purchased, easing of US rate cut expectations, or changes in Middle Eastern geopolitical dynamics.

In traditional finance, participating in gold involves two main ways: one is investing in gold products themselves, such as physical gold, paper gold, gold funds, etc.; the other is participating in the upstream and downstream of the gold industry chain, such as gold mining stocks, jewelry stocks, gold ETF stocks, etc.

The former generally follows gold price movements and is relatively stable, but holding it does not generate cash flow income; profits are only realized when selling after price appreciation. The latter tends to be more volatile, and stock prices often do not move in perfect sync with gold prices, making participation and profit-taking more challenging.

With the advancement of blockchain technology and the evolution of the crypto finance industry, in the RWA (Real-World Asset) track, industry pioneers have explored gold tokens, or rather gold stablecoins, which are pegged 1:1 to one ounce of gold. Their prices move in sync, and holding them can also generate staking yields, making them a good alternative solution.