NYDIG says tokenised US gold could boost Bitcoin

Greg Cipolaro, research head of the New York Digital Investment Group (NYDIG), contends that tokenising U.S. gold reserves on a blockchain might indirectly help Bitcoin (CRYPTO:BTC) by increasing awareness of decentralised systems, despite the fact that it is fundamentally different from the cryptocurrency.

The idea, floated by Trump administration officials and Elon Musk, aims to enhance transparency in government audits but faces scepticism about its feasibility.

Cipolaro emphasised that blockchains are “not very smart” and lack inherent trustlessness when applied to physical assets like gold.

Unlike Bitcoin, which operates without central oversight, tokenised gold would still rely on coordination with institutions to verify ownership and movement.

“Bitcoin has no idea what the price of Bitcoin is or even the current time,” Cipolaro noted, highlighting the protocol’s design to eliminate intermediaries.

Tokenisation, he added, could improve audit transparency but would not replicate Bitcoin’s decentralised ethos.

The push for blockchain-based gold tracking stems from decades-old conspiracy theories about Fort Knox’s gold reserves.

President Donald Trump and Musk have questioned whether the U.S. Mint’s reported holdings are accurate, despite annual audits confirming the gold’s presence.

The vaults were last opened in 2017 for a Treasury-led inspection, with the Mint stating no significant gold has been added or removed since.

While tokenised gold and Bitcoin serve distinct purposes, Cipolaro suggested that mainstream discussions about blockchain applications could drive curiosity about cryptocurrencies.

This awareness, he argued, might “ultimately benefit Bitcoin” by normalising blockchain technology in public discourse.

The proposal coincides with broader debates about blockchain’s role in governance.

Critics argue that tokenising gold would not address systemic trust issues, as audits still depend on centralised entities.

However, proponents see it as a step toward greater fiscal accountability, even if it falls short of Bitcoin’s decentralised ideals.

At the time of reporting, the Bitcoin (BTC) price was $86,894.73.