Structural Requirements for Compliant Gold-Backed Token Systems
Abstract
Gold-backed tokens have re-emerged as instruments of interest in institutional finance, driven by renewed demand for inflation hedging, asset-backed settlement instruments, and digitally native representations of physical commodities. Unlike fiat-referenced stablecoins, gold-backed tokens must reconcile on-chain logic with off-chain physical custody, legal ownership, and regulatory oversight. Failures in this reconciliation have historically resulted in opaque reserve claims, unverifiable backing, and regulatory non-compliance.This paper presents a structural analysis of the requirements for compliant gold-backed token systems intended for institutional and regulated environments. Rather than focusing on implementation-specific details or issuer claims, the paper identifies the architectural components, verification mechanisms, and governance constraints necessary to ensure legal enforceability, auditability, and long-term compliance. The analysis emphasizes that regulatory compliance is an emergent system property arising from correct structure and lifecycle enforcement, not from disclosures or attestations alone.
Fields of Study & Subjects
Blockchain Technology Applications and Security
FinTech
Crowdfunding
Digital Finance
Islamic Finance and Banking Studies
Publication details
- Journal / source
- Figshare
- Publication date
- 1 January 2026
- Document type
- Preprint