Hong Kong Eyes Tokenized Gold Trading to Counter Dollar Dominance
Authorities weigh move to establish worldÔÇÖs first digital gold settlement hub amid rising geopolitical strains.
Authorities in Hong Kong are considering a major initiative to expand tokenised gold trading, a step aimed at positioning the city as the worldÔÇÖs first settlement centre for digital gold transactions while reducing reliance on the US dollar.
According to the South China Morning Post, Chief Executive John Lee Ka-chiu is expected to outline the effort in his upcoming policy address. His advisers have urged him to put forward a framework for tokenised gold trading that would strengthen Hong KongÔÇÖs standing as an international financial hub. One insider noted, ÔÇ£The move will boost gold trading in Asia and bypass the Western-dominated international payment settlement system amid the rising geopolitics.ÔÇØ
Supporters say the initiative would enhance liquidity and lower investment barriers. But shortcomings remain: digital gold offered by local banks does not guarantee redemption in physical metal, while major institutions such as HSBC continue to store trading reserves in London rather than in Asia.
GoldFix Comment
By encouraging citizens to trade gold in tokenised form, Hong Kong seeks to build a liquidity pool that allows digital gold to reach critical mass for everyday users, while simultaneously putting in place institutional frameworks for large-scale trading.
This mirrors the strategy being advanced by BRICS nations: a top-down and bottom-up rollout of gold as money. At the sovereign level, governments set rules, accumulate reserves, and choose to settle trade outside of dollars or treasuries. At the popular level, they liberalise ownership, enable small transactions, and promote tokenisation for seamless use. Taken together, these efforts create the conditions for gold to replace the dollar in transactions across BRICS economies.
They are replacing the dollar as a currency with tokenized gold.
