World Gold Council Partners with BCG to Release Tokenized Gold Shared Framework, Directly Takes On Tether and Paxos

The World Gold Council (WGC), in collaboration with Boston Consulting Group (BCG), released a white paper proposing a shared infrastructure framework called “Gold as a Service.” The goal is to standardize the issuance and management processes of tokenized gold, directly challenging the existing market dominated by Tether (XAUT) and Paxos (PAXG), which together have a total market value of $4.9 billion.
(Background: WGC plans to launch digital gold PGI. How does it differ from PAXG and XAUT?)
(Additional context: From trustless BTC to tokenized gold, who is the true “digital gold”?)

Table of Contents

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• What problems does the framework solve?
• Existing players: London vault vs. Swiss nuclear bunker
• Concept stage, timeline unclear
• Market observations

The WGC does not intend to stand by as the tokenized gold market grows freely. This organization, founded in 1987 with 29 mining members, released a white paper this week titled “Digital Gold: The Case for a Shared Infrastructure,” which introduces a shared infrastructure framework called “Gold as a Service.” The initiative directly targets the $4.9 billion tokenized gold market currently controlled by Paxos and Tether.

Mike Oswin, WGC’s Head of Global Market Structure and Innovation, explained the framework with a straightforward analogy: “Like the Intel logo on laptops.” He emphasized that WGC’s involvement aims to provide quality assurance for the industry, rather than creating competing tokens.

What problems does the framework solve?

The biggest barrier to tokenized gold today isn’t demand but entry barriers. Custody of physical gold requires storage infrastructure, complex logistics coordination, and standardized processes for reconciliation, compliance, and redemptions—all of which are costly for new issuers.

The shared service platform proposed by WGC aims to streamline these processes, enabling more institutions to issue tokenized gold under a unified standard without building their own custody and compliance systems from scratch. The potential effect is a significant reduction in market entry barriers, which could dilute the early-mover advantages of Paxos and Tether.

Existing players: London vault vs. Swiss nuclear bunker

Currently, the two main players have different setups. Paxos’s PAXG stores gold in the London Brink’s vault and is regulated by the New York Department of Financial Services (NYDFS). Tether’s XAUT stores gold in a Swiss cold war-era nuclear bunker. In terms of costs, XAUT has no custody fees but charges a 0.25% fee for direct purchase or redemption; PAXG uses a tiered fee structure.

WGC is not new to the tokenized gold space. The organization established the SPDR Gold Shares (GLD) ETF back in 2004, which now has a scale of $126 billion, making it one of the largest gold ETFs globally. This background gives WGC the confidence to propose a “shared infrastructure” framework.

Concept stage, timeline unclear

The most uncertain aspect of this white paper is that WGC has not disclosed any timeline or implementation roadmap. The proposal remains at the conceptual stage. This means that the narrative of “challenging Tether and Paxos” is more of a strategic signal in the short term rather than an immediate competitive threat.

The market also needs to assess whether WGC’s framework can truly persuade existing issuers and institutions to adopt it. Paxos and Tether have already built significant first-mover advantages in custody, compliance, and user base. Relying solely on a “quality endorsement” brand may not be enough to disrupt the current landscape.

Market observations

The $4.9 billion tokenized gold market is still early in the broader RWA (Real-World Asset) sector. However, WGC’s involvement signals a clear intent: traditional gold industry organizations are attempting to take control of the standards for on-chain gold. If the “Gold as a Service” framework is eventually implemented, the most immediate beneficiaries will be new issuers eager to enter but hindered by infrastructure barriers. Meanwhile, Tether and Paxos could face pressure as external forces redefine the standards. The battle for influence over tokenized gold is just beginning.