As tokenized gold surges in popularity, blockchain security firm CertiK has released detailed guidance on crafting reliable proof-of-reserves (PoR) systems to safeguard this emerging asset class. Unlike native cryptocurrencies such as Bitcoin, where holdings can be verified directly on the blockchain, tokenized gold represents claims on physical bullion stored in off-chain vaults.
This hybrid structure demands sophisticated verification processes that bridge digital transparency with real-world custody, according to the firm’s latest analysis published on February 22, 2026.
The tokenized gold market has expanded dramatically, surpassing $4.5 billion in total value by the close of 2025.
This growth has been fueled by gold prices climbing above $4,500 per ounce, alongside rising institutional interest, central bank purchases, and broader de-dollarization trends.
Investors are drawn to the liquidity and accessibility of blockchain-based gold tokens, yet they face inherent uncertainties: does the issuer truly hold the corresponding physical metal? Is it free from liens or rehypothecation? And can tokens be reliably redeemed for actual gold bars?
CertiK emphasizes that effective PoR for tokenized gold must go far beyond simple on-chain balance snapshots used for cryptocurrencies.
It requires multi-layered confirmation of physical existence through detailed custodial documentation, unique serial numbers on gold bars, independent assay reports, and periodic physical inspections.
Supply reconciliation is equally vital—ensuring the circulating token volume precisely matches the audited gold reserves held in secure vaults.
Legal due diligence plays a central role, scrutinizing custody agreements to confirm no third-party claims or encumbrances exist on the assets.
Finally, redemption protocols must be rigorously validated to guarantee that burning tokens on-chain triggers the prompt, documented release of equivalent physical gold.
The security firm highlights structural challenges that make gold PoR significantly more complex than its crypto counterparts.
Digital assets allow cryptographic proofs like Merkle trees for instant, trust-minimized verification.
Physical gold, however, introduces off-chain asymmetries: verification relies on human audits, legal reviews, and third-party attestations rather than pure code.
Weak or incomplete PoR leaves investors exposed to risks such as fractional reserves or custodial failures—issues that have plagued traditional gold markets through warehouse frauds and insolvency cases.
Regulatory momentum is accelerating the need for strong PoR. Frameworks like the European Union’s MiCA regulation,
Dubai’s VARA guidelines, and Hong Kong’s SFC requirements are imposing stricter reserve transparency and custody standards on asset-backed tokens.
What began as a best practice is rapidly becoming a compliance necessity, helping issuers mitigate counterparty risks across vaults, insurers, logistics partners, and minting processes.
CertiK recommends that market participants prioritize independent, third-party PoR attestations conducted at least quarterly.
These reports should be publicly accessible and cover the full spectrum: physical audits, legal clearances, and operational redemption flows.
Such transparency not only satisfies regulators but also builds long-term confidence among retail and institutional buyers.
In conclusion, as tokenized gold matures into a cornerstone of real-world asset tokenization, well-designed PoR mechanisms will separate trustworthy issuers from the rest.
By connecting blockchain’s immutable ledger with rigorous off-chain verification, CertiK argues that the industry can deliver on gold’s promise of secure, borderless value storage while minimizing the vulnerabilities that have historically undermined precious metals markets. The firm itself provides specialized PoR audit services to support this critical infrastructure.
