Tokenized gold on Bitcoin is a system that inscribes a physical bullion serial number onto the Bitcoin blockchain via Ordinals, creating a tradable digital token that represents a specific 1 oz gold bar held in a Brinks vault. Redemption requires KYC and custodian verification.
-
Token equals a specific gold bar
-
Inscription uses Ordinals metadata linking serial numbers from Brinks vault bars to Bitcoin tokens
-
Redemption requires know-your-customer (KYC) checks and custodian transfer to owner
Meta description: Tokenized gold on Bitcoin links physical gold bars to Ordinals on Bitcoin for trading and redemption; learn how to buy, trade, and redeem. Read now.
What is tokenized gold on Bitcoin?
Tokenized gold on Bitcoin is a digital representation of a specific physical gold bar created by inscribing the bar’s serial number and custody metadata onto the Bitcoin blockchain using the Ordinals protocol. This process mints a tradable token tied to a vaulted 1 oz gold bar stored with a custodian such as Brinks.
How does the Ordinals inscription link a gold bar to a Bitcoin token?
The Ordinals protocol embeds metadata—most importantly the gold bar’s unique serial number—directly into a Bitcoin inscription. The inscription acts as a token. The custodian (Brinks) stores the physical bar in a secure vault, and a regulated marketplace (TRIO, operated by OrdinalsBot, with Swarm Markets handling custody procedures) manages trading and redemption compliance.
How to mint, trade, and redeem a gold-on-Bitcoin token?
Steps to acquire and redeem a tokenized gold bar are straightforward and compliance-driven.
- Mint: Purchase one or more 1 oz bars and mint them as Ordinals inscriptions tied to each bar’s serial number.
- Custody: The corresponding physical gold bar is stored in a secure Brinks vault in London under custodial records.
- Trade: The Ordinal token trades like any other inscription on TRIO’s Bitcoin-native marketplace.
- Redeem: To receive the physical bar, complete KYC via the custodian (Swarm Markets) and follow transfer procedures for regulated assets.
Why is KYC required to redeem physical gold?
KYC is required because physical gold is a regulated real-world asset and subject to anti-money-laundering and identity verification laws. Custodians must verify the identity of redeemers before releasing vaulted bullion to ensure legal compliance and secure transfers.
How many gold bars have been tokenized so far and what is the market context?
Initially, six single-ounce bars have been tokenized. Tokenized gold is an active segment of the real-world asset market; similar Ethereum-based tokens (Tether Gold, Pax Gold) and RWA protocols hold multi-billion-dollar on-chain value. Data from RWA.xyz reports over $26 billion in total value across real-world asset protocols.
Frequently Asked Questions
Can I redeem the physical gold linked to a Bitcoin Ordinal?
Yes. Redemption requires completing KYC with the custodian (Swarm Markets) and following transfer procedures. Once verified, the physical bar can be released from Brinks vault custody to the verified owner.
Is tokenized gold on Bitcoin the same as gold-backed stablecoins?
No. Tokenized gold via Ordinals represents a specific physical bar (by serial number) stored in a vault, while many gold-backed tokens (on other chains) represent pooled or fractional holdings and use different custody and issuance models.
Key Takeaways
- Specificity: Each token is tied to a unique serial-numbered gold bar stored in a Brinks vault.
- Tradability: Tokens trade on Bitcoin-native marketplaces like TRIO using Ordinals inscriptions.
- Compliance: Redemption requires KYC through custodial partners (Swarm Markets) due to regulatory rules.
Expert context and sources
OrdinalsBot co-founder Brian Laughlan described the process of attaching serial numbers to Ordinals as the core mechanism. Market context includes reported figures from RWA.xyz on total market value in real-world asset protocols, and comparisons to Ethereum-based tokenized gold offerings such as Tether Gold and Pax Gold (names mentioned as plain text reference).
Conclusion
The emergence of tokenized gold on Bitcoin ties physical bullion to Bitcoin Ordinals, combining the custody certainty of vaulted gold with the tradability of on-chain tokens. This model demands compliant KYC redemption and could set a standard for how custodians inscribe and manage real-world asset metadata on Bitcoin. Watch for more mints if market demand grows.
You start by minting 1 or more 1oz bars of gold 💎 Trio will inscribe the assets onto the Bitcoin blockchain, then with the help of Swarm Markets & Brinks your gold bar gets stored in a safe 🏦 After this you can trade your Ordinal on our marketplace!
