The global digital gold market could expand to between $160 billion and $170 billion by 2031, growing at an annual rate of about 27 per cent, as rising investor interest in tokenised assets creates fresh opportunities for the precious metal, according to the World Gold Council (WGC).
The council, in its report on the digital gold market, said the emerging category, which includes vaulted digital gold and tokenised gold, currently accounts for less than one per cent of the estimated $13 trillion global physical investment gold market, despite a recent surge in trading activity.
The report identified trust, access through mainstream financial platforms, new product applications and competitive pricing as the principal factors that will determine whether digital gold moves beyond its current niche status to become a more established investment category.
Tokenised gold generated $90 billion in cumulative spot trading volumes in the first quarter of 2026, surpassing the volume recorded throughout 2025, while the broader digital gold market has grown to an estimated $45 billion to $55 billion.
The WGC said the acceleration comes as financial markets undergo a structural digital transformation, with tokenised investments gaining wider acceptance and creating new avenues for investors to access traditional assets.
Its findings were based on a survey of more than 12,000 retail investors globally and interviews with 20 industry experts, examining the factors driving digital gold adoption and the barriers preventing stronger participation.
According to the council, nearly nine in 10 retail investors indicated a willingness to invest in digital gold under the right conditions, pointing to substantial demand that has yet to translate into actual investment at scale.
The report estimated that addressing the principal barriers to adoption could unlock up to $700 billion in latent demand, potentially creating a market broadly comparable in size to physically backed gold exchange-traded funds (ETFs).
However, the council cautioned that converting this potential into actual investment would depend on whether market participants could establish the trust, accessibility and commercial competitiveness required to attract a broader investor base.
Trust emerged as the most significant consideration, with nearly four in five investors identifying confidence in the provider as a priority before committing funds. Evidence of product safety and legitimacy was the most frequently cited factor that could encourage investment.
The ability to redeem digital holdings for physical gold was also identified as an important confidence-building measure, reinforcing the need for transparent arrangements demonstrating that digital claims are backed by the underlying asset.
Regulation and consumer protection were similarly identified as important considerations for potential investors, highlighting the role of credible oversight in reducing uncertainty around ownership, custody and redemption.
The council also found that distribution through familiar financial channels could significantly accelerate adoption. Markets where digital gold is integrated into mainstream platforms, including banking applications, payment services and financial super-apps, record penetration rates up to seven times higher than markets without comparable distribution channels.
India, China and Indonesia were cited as examples of markets where such integration has helped improve access to digital gold products.
Beyond distribution, the report highlighted product utility as another potential driver of demand. Yield generation through lending or using digital gold as collateral ranked as the leading distinctive feature investors wanted, ahead of the ability to use the asset for payments.
Pricing, however, remains a critical condition for adoption. Although low prices alone were not a major motivation for investing in digital gold, an uncompetitive price point ranked as the second most common barrier to entry.
The council said digital gold products must remain competitive against alternative investment formats, including physical gold and gold-backed ETFs, if providers are to convert investor interest into sustained demand.
New investors could drive growth
The report suggested that digital gold could expand the overall gold investment market rather than simply diverting funds from established products.
About 65 per cent of estimated latent demand comes from individuals who have not previously invested in gold. Among existing gold investors, more than half of those willing to invest in digital gold said they would use money not currently allocated to the asset.
The findings indicate that digital gold could attract new participants and additional capital into the gold market, rather than merely replacing investment in bars, coins and physically backed ETFs.
Younger investors are expected to play an important role in this expansion. Awareness of digital gold stands at 50 per cent among investors aged 25 to 34, compared with 23 per cent among those aged 55 and above.
Younger investors are also twice as likely as older cohorts to say they would invest if barriers to entry were addressed, according to the report.
The council said the next five years would be decisive in determining whether digital gold develops into a mainstream investment category or remains a relatively small segment of the broader gold market.
Its projected growth trajectory, it noted, would depend on the industry’s ability to address investor concerns at scale, expand distribution, introduce useful financial applications and maintain competitive pricing.
