Digital gold market could reach $170 billion by 2031, World Gold Council says

The global digital gold market could grow to as much as $170 billion by 2031, up from $45 billion to $55 billion today, the World Gold Council said in a report. Tokenization, wider access through financial platforms and rising investor interest are expected to drive adoption worldwide.

How big could the digital gold market get by 2031?

The council projects annual compound growth of about 27% over the next five years. That depends on providers addressing barriers involving trust, regulation, accessibility and pricing. Removing them could unlock up to $700 billion in potential long-term demand, a market comparable to today's physically backed gold exchange-traded funds (ETFs).

The council cautioned that the $700 billion figure reflects potential demand under its modeling assumptions, not a near-term market forecast.

Digital gold remains a small part of the wider gold industry. The physical investment gold market is valued at about $13 trillion, while the overall gold market, including jewelry, investment products and central bank reserves, exceeds $30 trillion at current prices.

Digital gold accounts for less than 1% of the physical investment market. It represents about 0.4% of physical investment gold holdings, equivalent to approximately 370 metric tons, the report said.

What barriers are holding back digital gold investors?

The report draws on a survey of more than 12,000 retail investors worldwide and interviews with 20 industry experts. Nearly nine in 10 retail investors said they would consider investing in digital gold if key barriers were addressed. The council said converting that interest into actual investments remained a challenge.

Trust emerged as the most important factor, with nearly four in five investors identifying confidence in the provider as a priority. Investors also want clear evidence that products are legitimate and backed by physical gold. They want accessible redemption mechanisms that let them exchange digital holdings for the underlying metal.

Regulation and consumer protection are also important, particularly as digital gold expands beyond specialist investment platforms into mainstream financial services.

Competitive pricing remains essential. Low prices alone were not a leading reason for choosing digital gold, but an uncompetitive price was the second most commonly cited barrier to entry, the report said. Digital products must compete with physical gold, gold-backed ETFs and other investments on transaction costs, fees and ease of ownership.

How can digital gold reach more investors?

Distribution through familiar digital channels is a major driver of adoption. Markets such as India, China and Indonesia offer digital gold through super-apps, payment platforms and other widely used services. They have recorded penetration rates up to seven times higher than markets without comparable distribution networks.

Integrating digital gold into banking applications and payment services could help providers reach more investors. This is particularly true for consumers who find conventional gold products difficult or expensive to access.

Product innovation could also broaden demand by letting investors use gold for purposes beyond preserving wealth. Yield generation through lending or using gold holdings as collateral was the most frequently cited distinctive feature investors wanted, ahead of using it to make payments.

Such services could expand gold's role in financial portfolios. Their development would depend on product structures, regulatory requirements and the risks associated with lending and collateral arrangements.

Can digital gold attract new money and younger investors?

The council suggested that digital gold could attract new money into the gold market rather than simply diverting existing investments from bars, coins and ETFs. About 65% of the estimated latent demand comes from people who do not currently invest in gold. Among existing gold investors, more than half said they would fund a digital gold investment with money not already allocated to the metal.

Younger investors are likely to play a major role in expanding the market. Awareness of digital gold reaches 50% among people ages 25 to 34, compared with 23% among those 55 and older.

Younger investors are also twice as likely as older respondents to say they would invest if the main barriers were removed. The finding points to the importance of digital distribution and accessible products.

What is the difference between vaulted and tokenized digital gold?

The council defines digital gold in two main categories: vaulted digital gold and tokenized gold. Both provide exposure to physical gold held in secure custody, but they differ in how ownership is recorded and transferred. The definition excludes physically backed gold ETFs, leveraged products and gold-backed stablecoins.

Vaulted digital gold allows investors to own physical gold through an account operated by a platform or service provider. Tokenized gold represents a specified quantity of physical gold through a digital token whose value is linked to the underlying metal.

Vaulted digital gold remains the dominant category, accounting for about 89% of the market by value, while tokenized gold represents approximately 11%. More than half of the vaulted market is concentrated in China, India and Indonesia, reflecting the importance of established digital distribution channels.

Tokenized gold has been the main source of recent market activity. It generated $90 billion in cumulative spot trading volume in the first quarter of 2026, exceeding the total recorded throughout 2025. Its value rose fivefold, from about $1.2 billion in late 2024 to $6 billion, while underlying volumes expanded 2.8 times, the report said.

Tether Gold and Paxos Gold account for more than 90% of the public tokenized gold market. Combined daily trading volumes for the two largest tokens have increased by approximately 45% over the past year.

The market is also attracting traditional financial institutions, refiners, mints, exchanges and custodians, expanding beyond its earlier concentration among cryptocurrency-focused companies. HSBC's Gold Token is one example.

Will digital gold become a mainstream investment?

The World Gold Council said the next five years would be critical in determining whether digital gold becomes a mainstream investment category or remains a relatively small segment of the global gold market.

The outcome will depend less on consumer interest alone than on the industry's ability to build trust, improve distribution, offer useful financial features and maintain competitive pricing, it said.