Follow the Central Banks: Why Tokenised Gold Is the On-Chain Trade of the Decade

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Follow the Central Banks: Why Tokenised <a href="https://pricpr.com/gold">Gold</a> Is the On-Chain Trade of the Decade

Overview

For sixteen years straight, central banks around the world have been buying more gold. They purchased over 1,000 tonnes each in 2022, 2023, and 2024 – a level of buying not seen consistently since the 1960s. In 2025, purchases continued to be strong at 863 tonnes, marking the fourth year in a row with over 500 tonnes – significantly higher than the average of 473 tonnes per year between 2010 and 2021. This demand seems to be increasing even more in 2026.

The recent increase in gold purchases by central banks isn’t accidental or a short-term trend. It’s a planned reaction to significant changes in the global financial landscape – including the use of dollar reserves as a strategic tool in 2022, the growing move away from relying on the US dollar in international reserves, and gold’s consistent reliability during times of geopolitical tension and inflation.

Tokenized gold offers a way to reduce the strain on the traditional supply and distribution of physical gold. This digital form of gold is backed by real gold, regularly audited, and recorded on a blockchain, allowing investors familiar with decentralized finance (DeFi) to benefit from gold’s stability. It provides similar investment opportunities to those used by countries managing their reserves, but without the need for large investments, a direct relationship with a vault, or exposure to Western legal systems. GoldNZ, created by the New Zealand-based and regulated company Techemynt, expands on this by storing the physical gold backing the tokens in a secure Pacific vault.

Central Bank Gold Buying Activity

In 2025, global gold demand reached a record high, exceeding 5,000 tonnes and totaling over US$555 billion. The average price for the year was US$3,431 per ounce, a significant 44% increase from the previous year, and the price hit a new record high 53 times. By January 2026, gold surpassed the US$5,000 per ounce mark for the first time ever.

This isn’t just about a few central banks increasing their reserves anymore. Here’s a look at the six biggest central banks that were net buyers in 2025:

Central bank 2025 net buys Total reserves Notable context
National Bank of Poland 102t 550t Largest buyer for 2nd year; governor targets 700t for national security
National Bank of Kazakhstan 57t – Highest annual buying on record (data since 1993)
Central Bank of Brazil 43t 172t First buying since 2021
Central Bank of Turkey 27t 644t 28+ consecutive months of net buying
People’s Bank of China 27t 2,306t Official holdings only; 17-month buying streak as of April 2026
Czech National Bank 20t 72t Targeting 100t by 2028

It’s important to note that data on gold purchases by central banks may be incomplete. The World Gold Council believes around 57% of purchases made in 2025 weren’t officially reported, meaning the actual amount bought is likely higher than what’s publicly known. This suggests the trend of central bank gold buying is even more significant than current figures indicate.

A recent survey by the World Gold Council of 73 central bank reserve managers – the largest number ever polled – revealed strong optimism about gold. Ninety-five percent anticipate global central bank gold reserves will increase in the next year, a new high. No respondents predicted a decrease. Furthermore, 76% expect gold to represent a larger portion of total reserves within five years.

Central Banks Push Towards Protecting Wealth 

A shift from regular purchasing to long-term holding began on February 26, 2022, when the G7 nations, the European Union, and Australia decided to freeze roughly $300 billion of Russia’s central bank’s foreign currency reserves. Over $193 billion of these reserves were held at Euroclear in Belgium.

For central bank risk managers globally, the real impact of this event wasn’t the financial amount involved, but *how* it happened. The incident demonstrated that reserves held in foreign accounts – whether in US dollars, euros, British pounds, or Japanese yen, and processed through Western financial systems – can be frozen based on a political choice. This action was taken with a hastily constructed legal justification, happened very quickly, and the affected institution had no way to appeal or seek legal remedy; no court process was involved.

Unlike other assets, physical gold held within a country isn’t subject to the control of foreign entities. It can’t be sanctioned, devalued, or affected by the financial instability of any government. A 2025 report by the World Gold Council revealed that central banks primarily hold gold because it performs well during crises, diversifies portfolios, protects against inflation, serves as a reliable store of value, and – importantly – carries no risk related to the issuing government’s financial health.

China has been gradually decreasing its investments in US Treasury bonds, falling from a high of about $1.32 trillion in November 2013 to $683.5 billion by December 2025 – a level not seen since 2008. This shift is a normal part of how they manage their investments. At the same time, China’s central bank continued to buy gold for the 17th month in a row in March 2026, bringing their total gold reserves to around 2,313 tonnes.

What the signal means: the flow model for investors

Central banks buy gold gradually, reporting their purchases only every few months, and these purchases aren’t reflected in immediate market prices. This buying isn’t about short-term trading; it indicates a long-term shift in strategy. The fact that central banks have consistently bought gold at a high rate for 16 years suggests that the world’s biggest and most sophisticated investors believe gold should represent a larger portion of their investments than it did in 2009.

Institution 2026 target Rationale
J.P. Morgan US$6,300 Base case end-2026; bull case US$8,000+ if household allocation rises to 4.6%
UBS US$6,200 Structural demand from central banks and ETFs cited
Deutsche Bank US$6,000 De-dollarisation and geopolitical risk premia
Societe Generale US$6,000 Inflation hedge demand + dollar weakness
Goldman Sachs US$5,400 Base; higher if central bank buying accelerates further
HSBC US$4,450 More conservative; anticipates demand moderation

On February 2, 2026, J.P. Morgan set a price target of $6,300, based on the growing trend of diversified investments and an expected 800 tonnes of gold purchases by central banks in 2026. They suggest the price could rise to between $8,000 and $8,500 if global household gold ownership increases from 3% to 4.6%, a development that institutional investors are better equipped to assess than forecast.

The Tokenization opportunity

For sixteen years straight, central banks around the world have been buying more gold than they’ve been selling. This trend has significantly increased since 2022 because countries realized that holding dollar reserves in Western banks carries political risks – risks that gold doesn’t have. Essentially, the freezing of some countries’ dollar reserves showed risk managers that gold is a safer option.

Tokenized gold – meaning it’s fully owned, backed by independently verified reserves, and easily transferable on the blockchain – offers DeFi investors a way to trade gold without the usual limitations of traditional gold, such as price floors, reliance on vaults, or exposure to Western legal systems. The tokenized gold market grew by 360% in 2025, and with support from organizations like the World Gold Council and Boston Consulting Group, it’s clear this trend is here to stay.

GoldNZ offers a unique advantage over current digital gold products by storing physical gold in New Zealand, a location outside the reach of international sanctions – a concern highlighted in 2022 and again during the 2026 conflict in Iran. This conflict caused disruption in gold markets like Dubai, where traders quickly sold off their gold at significantly reduced prices.

A recent report from Ripple and BCG forecasts the market for tokenized real-world assets will reach $18.9 trillion by 2033, with gold being a prime candidate for early adoption due to its widespread recognition and established market. While McKinsey offers a more cautious estimate of $2 trillion by 2030 – excluding cryptocurrencies and stablecoins – even this figure represents a significant jump from the current market size of $7.3 billion.

As an analyst, I find on-chain data incredibly valuable because it’s transparent and updates in real-time. Unlike traditional reports – like those from central banks which are released quarterly and often with delays or incomplete information – we can continuously track tokenized gold transfers and wallet holdings directly on the blockchain. For anyone using flow analysis to inform their investment decisions, this immediate access to data is a significant step up in terms of signal quality and timeliness.

A recent report by the World Gold Council and Boston Consulting Group, titled “Digital Gold: The Case for a Shared Infrastructure,” suggests creating a standardized, open platform to link physical gold storage with digital gold offerings. According to BCG Managing Director Matthias Tauber, the focus has shifted from *if* gold will become digital, to *how* it can integrate with today’s financial systems while maintaining the security of the physical gold itself.

GoldNZ: the New Zealand implementation

PAX Gold and Tether Gold have proven it’s possible to manage digital gold at a large scale using established systems like those of the LBMA and Swiss vaults. Techemynt’s GoldNZ, launching in March 2026, expands these options by adding a new location and equally secure infrastructure.

Each GoldNZ token is backed by one troy ounce of high-quality gold that is securely stored in New Zealand at Commonwealth Vault, and its reserves are regularly audited. The tokens are managed through a special legal arrangement called a bare trust under New Zealand law, meaning holders have direct ownership of the specific gold the token represents – it’s not an investment in a fund. Importantly, if Techemynt were to go out of business, the gold would still belong to the token holders, not to the company’s creditors. This differs from how gold ETFs work, where you own a share of the fund, not the actual gold.

Our token is accessible on the Ethereum, Polygon, and Base networks, all using the same contract address. This multi-chain approach reduces risk by avoiding reliance on a single network and provides greater flexibility for integration with various DeFi platforms. Techemynt is a registered financial service provider in New Zealand (FSP773214) and operates in full compliance with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, requiring thorough verification of all token holders.

As a researcher, I’ve found that what really sets our project apart is the location where we store the gold – New Zealand. It’s a strategically chosen jurisdiction because it’s outside the reach of organizations like NATO and OFAC, and importantly, it has a strong history of protecting private assets. We’re seeing a global trend of nations increasing their gold reserves – the Federal Reserve noted a doubling since 2015 – as they look for alternatives to US dollar-based assets held with traditional Western institutions. GoldNZ aims to offer on-chain investors the same benefits: secure gold storage in a stable, OECD-member country with a reliable legal system, all accessible through a token representing one troy ounce of gold.

Techemynt created NZDS, New Zealand’s first stablecoin backed by the New Zealand dollar, which launched in 2021. They also offer SilverNZ, completing a range of tokenized New Zealand assets all managed under a single set of regulations. This allows investors with diverse digital portfolios to easily switch between gold, silver, and New Zealand dollar funds within the Techemynt platform – a feature not currently offered by any other single provider.

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2026-04-21 07:45