SmartGold, a gold -supported individual retirement account (IRA) Provider, has collaborated with the Tokenization Platform Chintai Nexus to let us investors put their gold possession on blockchain rails and earn a yield in decentralized financing (Defi) Protocols.
With the structure, IRA-Held Gold Tokenized 1: 1 on Chintai’s regulated platform can then be put into work as security in defi lending markets such as Morpho and Kamino. This security can unlock liquidity, which can be reinvested elsewhere, while the underlying gold remains the vault and insured. Account’s tax -deferred status remains intact, according to the press release shared with Coindesk.
The move addresses a long -term compromise for retirement savings: Gold offers stability, but typically produces no income. Investors who keep physical gold in an IRA have historically had to choose between tax benefits of the account and the chance to implement the metal in dividend -generating strategies. The IRS rules made combination of the two almost impossible without triggering sanctions.
“For decades, gold investors have been subjected to a difficult choice: security or dividend,” Smartgold CEO Aaron Haley said in a statement. “We transform the ultimate safety garden asset into a powerful, productive tool to build wealth.”
The rolling opens access to tokenization for Smartgold’s $ 1.6 billion in vaulted assets, making it one of the biggest implementations of tokenized gold to date and the first tailor -made for US pension accounts.
It also emphasizes the growing focus on tokenization of assets in the real world such as raw materials, equities and foundations, a sector that has attracted interest from large financial companies.
Read more: Tokenized Gold Market Tops $ 2.5B as precious metal is approaching record heights
