Gold-backed IRA provider SmartGold is moving $1.6 billion of vaulted assets onchain through a partnership with tokenization platform Chintai Nexus, potentially opening the door to tokenized gold investments through self-directed US Individual Retirement Accounts (IRAs).
Each gold token is backed one-for-one with physical bullion and can be deployed as collateral across decentralized finance (DeFi) lending protocols, the companies said Tuesday.
The structure works by having investors purchase and store vaulted gold through a SmartGold self-directed IRA. Chintai then tokenizes the holdings, issuing digital representations tied directly to the physical asset.
Those tokens can be used as collateral on platforms such as Morpho and Kamino, giving investors access to US dollar–denominated liquidity. The borrowed capital can be reinvested into other yield-generating strategies, while the underlying gold remains stored and the account’s tax-deferred status is preserved.
Self-directed IRAs carry the same tax benefits as traditional or Roth accounts but give retirement planners access to a broader range of assets, including cryptocurrencies, private equity and real estate. According to Pacific Premier Trust, they represent 2% to 5% of the $10.8 trillion held in US IRAs.
The SmartGold–Chintai launch comes amid rising demand for tokenized gold. The International Precious Metals Bullion Group has rolled out tokenized products across its supply chain, while stablecoin issuer Tether has gained traction with Tether Gold, which topped $800 million in value earlier this summer and has since grown to $1.3 billion.
Meanwhile, medical technology company BioSig has recently pivoted toward tokenization through a merger with real-world asset platform Streamex. The combined entity secured $1.1 billion in growth financing to bring gold and other commodities onchain.
Related: Why tokenized gold beats other paper alternatives — Gold DAO
Gold: The original hedge gains momentum
While many crypto advocates highlight Bitcoin (BTC) as “digital gold” for its scarcity, divisibility and potential to preserve purchasing power, the original inflation hedge has been the standout performer this year.
Comex gold futures rose to a record high of $3,557 a troy ounce on Monday, extending the yellow metal’s year-to-date gain to 34%.
Demand has been fueled by geopolitical and political uncertainty, heavy central bank buying and persistent concerns about inflation and the broader economy.
As The Wall Street Journal reported, gold has also benefited from mounting questions over Federal Reserve independence, as US President Donald Trump has sought to shake up the institution, criticizing it for not cutting rates aggressively enough.
At last month’s Jackson Hole symposium, Fed Chair Jerome Powell signaled that rate cuts could be on the table in September as policymakers shift their focus to the labor market.
Related: Dollar stability questioned as Trump ousts Federal Reserve governor
