45% Of Central Banks to Buy Gold as Crypto Market Matures

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What to Know

  • 45% plan to increase reserves in 12 months vs 29% in 2024, citing geopolitics, inflation, and less USD exposure.
  • BTC ETFs like BlackRock’s IBIT hit $52.6B AUM, while PAXG/XAUt offer 24/7 on-chain gold access.
  • Dual gold-crypto products expected, with Basel III’s 0% risk weight for gold vs higher charges for crypto influencing future rules.
Central Banks

At just the time when digital assets are being recognized by institutions, central banks are purchasing gold at the fastest rate they have in decades. In a survey by the World Gold Council made public on April 22, 2025, 45% of central banks reported that they have plans to raise gold reserves in the coming 12 months, a sharp rise from 29% in 2024. This realignment is happening with the increasing usage of Bitcoin ETFs and tokenized real-world assets, indicating a larger historical rebalancing of institutional reserves.

Gold Demand Hits Record Levels

In their survey of 74 central banks, the WGC also discovered that 81% of them think that globally gold reserves will increase in 2025. The main reasons for such huge purchases are fears of geopolitical risk, inflation hedging, and a turn away from USD exposure. To give you an idea, in 2024, central banks purchased 1,037 tonnes of gold, which is the second-highest level ever after the 1,082 tonnes bought in 2023.

Central banks
Source: X

Also Read: China Launches mBridge SWIFT Alternative Backed by Five Central Banks

Digital Assets: Implications

This “flight to hard assets” also means that institutions buying Bitcoin see it In the same way to “digital gold.” For example, BlackRock’s iShares Bitcoin Trust reached $52.6 billion of assets under management (AUM) on April 24, 2025, becoming the top spot BTC ETF in less than 15 months. Now, apart from just physical gold, institutions are also investing in Bitcoin, as they can use these two non-correlated stores of value for diversification.

Tokenization platforms like Paxos Gold and Tether Gold are the winners as well, since they allow on-chain gold exposure with the possibility of settlement at any time of the day.

Also Read: Goldman Sachs Predicts Gold Price Recovery as Central Banks Increase Buying Activity

Market Implications

With the introduction of gold-crypto dual offerings, exchanges and custodians are going to see an increase in demand. Asset managers might introduce multi-asset products combining PAXG with spot BTC ETFs.

After considering Basel III risk weights, regulators will probably note that gold is 0% while crypto is subject to higher capital charges, a fact that might affect the future rules related to digital assets.

Also Read: Pakistan Central Bank Unlocks Crypto Banking by Lifting 2018 Ban for Licensed VASPs

Ananthyka J

Ananthyka J

Ananthyka J is a market reporter at Tronweekly, reporting on cryptocurrency news. She covers cryptocurrency markets, blockchain technology, and digital asset regulation, focusing on Bitcoin, Ethereum, DeFi, altcoins, and crypto policy. Her reporting emphasizes clear and accurate market coverage, including crypto market movements, regulatory developments, and blockchain adoption. She holds a BA in Journalism and Mass Communication and an MA in Communication and Media Studies. She has also completed multiple media internships, follows strict editorial and fact-checking standards, and discloses potential conflicts of interest when reporting.

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