TLDR
- SmartGold partnered with Chintai Nexus to tokenize $1.6 billion in IRA-held gold for US retirement investors
- Tokenized gold can be used as collateral on DeFi platforms like Morpho and Kamino while keeping tax-deferred status
- Each token is backed 1:1 with physical gold stored in secure vaults
- Investors can borrow against gold holdings and reinvest in yield-generating strategies
- This marks the first tokenized gold program designed specifically for US retirement accounts
SmartGold has launched a partnership with tokenization platform Chintai Nexus to put $1.6 billion worth of Individual Retirement Account gold holdings on the blockchain. The program represents the first tokenized gold offering designed for US retirement accounts.
The partnership solves a decades-old problem for retirement investors who hold physical gold. While gold provides portfolio stability, it typically generates no income while stored in vaults.
Under the new program, investors purchase gold through SmartGold self-directed IRAs. Chintai then creates blockchain tokens representing the physical gold on a one-to-one basis.
How the Tokenized Gold IRA System Works
The tokenized gold can serve as collateral on decentralized finance lending protocols including Morpho and Kamino. Investors can borrow US dollars against their gold token holdings without selling the underlying metal.
Borrowed funds can be deployed in other investment strategies while the gold remains in secure storage. The IRA structure preserves all tax-deferred benefits throughout the process.
Self-directed IRAs allow investment in alternative assets beyond traditional stocks and bonds. According to Pacific Premier Trust, these accounts hold 2% to 5% of the $10.8 trillion in total US IRA assets.
The accounts can include cryptocurrencies, private equity, and real estate investments. The SmartGold program extends these options to include tokenized precious metals strategies.
Rising Demand for Tokenized Gold Products
The launch comes as tokenized gold products gain market traction across the industry. Tether Gold has grown from $800 million to $1.3 billion in total value since summer 2024.
The International Precious Metals Bullion Group has introduced tokenized offerings throughout its operations. Medical technology company BioSig merged with real-world asset platform Streamex and secured $1.1 billion in financing for commodity tokenization projects.
Gold prices have supported increased investor interest in precious metals exposure. Comex gold futures reached a record $3,557 per troy ounce on Monday, marking a 34% year-to-date gain.
Central bank purchases, geopolitical uncertainty, and inflation concerns have driven gold demand higher. Federal Reserve policy questions have added to the metal’s safe-haven appeal.
SmartGold managing director Aaron Haley said the partnership transforms gold from a passive holding into an active investment tool. The program maintains physical gold security while enabling participation in digital asset yield strategies.
The $1.6 billion asset base makes this one of the largest tokenized gold deployments to date. Chintai Nexus provides the regulated tokenization infrastructure for the program.
