Why Tokenized Yield-Bearing Gold Stablecoin GLDY Will be Great For Bitcoin
Bitcoin is evolving into something very different from its original speculative form, and a tokenized yield-bearing gold stablecoin, Streamex GLDY, launching on 25 February, shines a light on what that future holds.
Market watchers will have noticed that gold has been trading like Bitcoin these past few weeks, displaying the sort of volatility once reserved for digital assets. On 30 January, spot gold fell by as much as 12% intraday, a day after printing its all-time high of $5,592.85 per ounce.
Yet, as the largest concentration of US military firepower in the Middle East since the 2003 invasion of Iraq gathers, gold is moving back above $5,000. It won’t be long before it tests its all-time high.
The rush of money into precious and semi-precious metals is happening when Bitcoin’s lustre as digital gold has seemed to fade. While gold has soared 17.7% year to date, despite its recent violent pullback, Bitcoin has moved in the opposite direction, down 23.2%.
However, it would be a mistake to write off Bitcoin and to fail to read the writing on the wall as tokenization momentum picks up, bringing the financial world even more into alignment with Bitcoin.
As gold becomes more tokenized, and as in the case of GLDY, yield-bearing too, the visibility of the present reality and future potential of Bitcoin as a source of income also comes into view. Tokenized gold helps shine a light on Bitcoin’s yield potential.
But let’s look past his Bitcoin boosterism for a moment and remind ourselves what most rich people already know – that amassing wealth is all about reinvesting income. Fixed income is still the senior market for good reason.
There are plenty of investors out there who will jump at the chance of investing in, say, a $1,000 bond yielding 4.5%. Compounded over 10 years, and that $1,000 turns into $1,552, representing a total return of 55.3%.
Now let’s apply that yield-capturing approach to gold, but also add in the capital returns as the price of gold soars.
Do similar for Bitcoin. If Eric Trump is right, Bitcoin is headed for a $1 million price tag, and the asset’s compounding yield returns would rocket – assuming you had loaned out your Bitcoin using a suitable financial instrument.