SmartGold, a Gold Backed Individual Retirement Account (IRA), cooperates with Tokenization Platform Chintai Nexus to have our investors put their gold possessions on blockchain rails and earn a yield in decentralized finance (Defi) protocols.
With the structure, the IRA-kept gold is drawn 1: 1 on the regulated Chintai platform and can then be put to work as collateral at Defi-credit markets such as Morpho and Kamino. That collateral can unlock the liquidity, which can be invested elsewhere, while the underlying gold remains arched and insured. The tax -defined status of the account remains intact, according to the press release shared with Coindesk.
The relocation focuses on a long -term assessment for pension savers: gold offers stability but usually does not yield any income. Investors who keep physical gold in an IRA have had to choose historically between the tax benefits of the account and the chance to use the metal in strategies for generating returns. IRS rules made combining the two almost impossible without activating fines.
“For decades, gold investors have been given a difficult choice: security or yield,” said SmartGold director Aaron Haley in a statement. “We make the ultimate safe-having activa a powerful, productive tool for building wealth.”
The rollout opens access to tokenization for SmartGold’s $ 1.6 billion in vaulted assets, making it one of the largest implementations of Tokenized Gold to date and the first tailor -made on American pension accounts.
It also emphasizes the growing focus on token real-world assets such as raw materials, shares and funds, a sector that has attracted interest from large financial companies.
Read more: Tokenized Gold Market Bovene $ 2.5 billion while the precious metal is approaching record highs
