The dollar is no longer the sole anchor: gold's strategic return in the era of diversified assets
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The dollar is no longer the sole anchor: gold's strategic return in the era of diversified assets
The role of gold has not changed, but the infrastructure of gold is undergoing profound changes.
Navigating Web3 tides with focused insightsAt the recent Bloomberg New Economy Forum held in Singapore, leaders from multiple global financial institutions sent a shared signal: global asset allocation is shifting from a "single-currency system" to a "multi-asset system." In this structural transformation, gold is returning to a central role in global reserve and investment systems.
Consensus from the Singapore Forum: The Global Asset System is Moving Beyond Singular Dependence
Jenny Johnson, CEO of Franklin Templeton, stated that while she does not expect the dominance of the U.S. dollar to disappear in the short term, “the real question is how much that dominance will erode,” implying that future global asset allocation should no longer rely entirely on a single currency anchor.
Danny Yong, founder of Dymon Asia Capital, emphasized from an asset allocation perspective that under conditions of high debt and loose monetary expectations, savings should not remain solely in fiat assets but should increasingly include scarce assets such as gold and equities. This aligns with the trend of some central banks increasing their gold reserves in recent years—by acquiring more "hard assets" and non-dollar holdings, they structurally reduce exposure to any single fiat currency.
Ravi Menon, former Managing Director of the Monetary Authority of Singapore (MAS), pointed out from a systemic standpoint that public debt situations in major developed economies will worsen, stating bluntly that “so-called risk-free assets are no longer truly risk-free.” In his view, this poses a substantive challenge to the current system heavily reliant on dollar-denominated asset pricing.
Although the three speakers come from different institutions and backgrounds, their views show remarkable consistency: asset allocation is moving from a "dollar-centric" model toward a "multi-asset, multi-anchor" system. Gold is one of the most critical systemic assets in this transition.
Structural Erosion of Dollar Dominance: Key Drivers Behind Diversified Allocation
The experts’ assessments are not based on sentiment but on a series of quantifiable long-term trends:
1. Rising U.S. debt increases the dollar’s risk premium
Data from the U.S. Treasury shows that U.S. federal debt has been on a sustained upward trajectory, intensifying market debate over the pricing logic of “risk-free assets,” thereby increasing global demand for hedging against dollar volatility.
2. Geopolitical cycles strengthen motivation for de-singularization
IMF official reserve data and WGC central bank gold surveys indicate that over the past several years, the share of the U.S. dollar in global foreign exchange reserves has slightly declined from its peak. Some countries are adding gold and other assets to structurally diversify away from sole reliance on the dollar.
3. Global capital flows are becoming more dispersed
Capital is being reallocated from U.S. bonds or dollar-denominated assets into a broader range of assets including gold, commodities, and non-U.S. equities.
"Diversification" is no longer merely an asset management strategy—it is increasingly becoming a systemic adjustment.
The dollar-based system remains strong, but its role as the "sole center" is being redefined by diversification trends.
Central Bank Gold Buying: The Most Representative Long-Term Structural Shift
A Bloomberg report dated October 29, 2025, noted that despite elevated gold prices, central banks worldwide continued net purchases of gold this year—a trend consistent with quarterly reports from the World Gold Council (WGC). Sustained central bank gold accumulation signifies:
● A systematic increase in gold’s weight within global reserve structures
● Central banks hedging against long-term risks of a single-currency system
● Renewed emphasis on gold as a "system-neutral asset"
This is not a short-term trading move but reflects a long-term assessment of future monetary system resilience.
Gold’s Re-positioning in the New Monetary Framework: Unique Value as a Cross-System Asset
In the emerging multi-asset framework, gold’s value is being reassessed due to its structural characteristics:
1. Gold does not depend on the credit of any single country
Its value is not directly affected by the policies, debt levels, or political risks of any one nation;
2. Gold is a cross-system reserve asset (across fiat currencies, systems, and political regimes)
It is among the few globally accepted "neutral assets" embraced widely by both developed and emerging markets;
3. Gold serves as a hedge against long-term inflation and currency volatility
4. Gold exists in both TradFi and DeFi ecosystems
It is one of the very few asset classes capable of seamless circulation between traditional finance and digital asset ecosystems.
Therefore, gold's return to the center of the global asset system is not due to short-term price gains, but because its cross-system attributes are being newly recognized.
Structural Limitations of Traditional Gold: Misalignment in the Digital Age
Despite rising importance, traditional forms of gold ownership face clear constraints:
● High purchase and custody costs
● Low efficiency in cross-border transfer
● Inability to verify authenticity on-chain
● Difficulty integrating smoothly into digital portfolio management systems
● Reporting transparency depends on custodians
Hence, institutions and investors alike are seeking gold infrastructure better suited to the digital era.
On-Chain Gold: Reshaping Reserve Assets Through Digital Infrastructure
On-chain gold represents an upgrade of gold’s infrastructure in the digital age—not a replacement of the asset itself. The core value of on-chain gold lies in enabling gold to be:
● Verifiable: Gold bar numbers and reserves can be directly verified on-chain
● Transferable: Freely movable across borders
● Integratable: Easily incorporated into digital asset portfolio management
● Auditable: Custody and on-chain records are transparent
It marks the third evolution of gold: from physical gold, to paper gold/ETFs, to on-chain gold (digitally verified + physically backed). This trend is not driven by any single company but by the broader advancement of global asset digitization. Within this shift, products like XAUm have established relatively clear structural frameworks. For example, XAUm, a digital gold token issued by Matrixdock, Matrixport’s RWA platform, features:
● Each XAUm backed by 1 troy ounce of 99.99% LBMA-certified gold
● Gold held in custody by professional firms such as Brink’s and Malca-Amit
● On-chain verification of individual gold bar IDs
● Free transferability between on-chain wallets
The significance of such products is not in creating "new gold," but in adapting gold to digital, cross-border, and multi-institutional management frameworks.
Toward a Multi-Asset System: Gold as a Structural Stabilizer, On-Chain Gold as a Technological Extension
The insights shared at the Singapore forum reflect deep structural changes underway in the global asset system:
● No longer singularly dependent on the U.S. dollar
● Reserve asset structures are diversifying
● Gold is being reaffirmed as a neutral anchor at the system’s core
● Digital infrastructure is reshaping how traditional reserve assets are used
The conclusion is clear: gold’s role has not changed, but its infrastructure is undergoing profound transformation. The emergence of on-chain gold enables gold to adapt to the global trends of digitalization, cross-border integration, and real-time asset allocation. In the future “multi-anchor, multi-system” architecture, gold will remain central—and digital gold (on-chain gold) will become its new form.
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