Tokenized Gold vs. Stablecoins: A New Era of Savings in Emerging Markets

In 2025, the financial landscape of inflationary emerging markets is undergoing a seismic shift. As traditional banking systems falter under the weight of hyperinflation and capital controls, digital assets-specifically stablecoins and tokenized gold-are redefining how individuals and institutions preserve wealth and conduct cross-border transactions. The question now is not whether these tools will coexist, but whether tokenized gold can displace stablecoins as the dominant savings and remittance vehicle in regions like Nigeria and Argentina.

The Rise of Stablecoins: A Digital Lifeline

Stablecoins have emerged as the backbone of financial resilience in volatile economies. By Q3 2025, stablecoins accounted for 30% of all on-chain crypto transaction volume, with annual activity surpassing $4 trillion-an 83% increase from 2024. In Nigeria, where the naira has lost over 16% of its value in a year, stablecoins like USDT and USDC are now used for 43% of B2B cross-border payments. Similarly, Argentina, grappling with a 31% inflation rate, saw $93.9 billion in crypto transactions between July 2024 and June 2025, with over 60% of these involving stablecoins.

The appeal of stablecoins lies in their simplicity and speed. Unlike traditional remittance systems, which can take days and charge exorbitant fees, stablecoins enable near-instant settlements at a fraction of the cost. For example, in Southeast Asia, $18.6 billion in stablecoin remittances were sent in the first half of 2025 alone. Regulatory clarity in the U.S. (e.g., the GENIUS Act) and emerging markets like Brazil and Argentina has further legitimized their use, fostering institutional confidence.

Tokenized Gold: A Digital Store of Value

Stablecoins have proven their utility in everyday transactions, but Tokenized gold, meanwhile, is carving out a niche as a hedge against inflation and a tool for long-term savings. Platforms like PAX Gold (PAXG) and Tether Gold (XAUt) now represent a $4 billion market, offering fractional ownership of physical gold with blockchain-based liquidity. In Sub-Saharan Africa, projects like Ubuntu Tribe and GSX are leveraging tokenized gold to reduce cross-border remittance costs by up to 70% and cut settlement times from days to minutes.

The advantages of tokenized gold are clear: it combines the intrinsic value of gold with the programmability of blockchain. For instance, in Nigeria, where gold prices hit record highs in 2025, tokenized gold has outperformed Gold ETFs due to 24/7 trading and instant settlements. However, adoption faces hurdles. Unlike stablecoins, tokenized gold requires trust in custodians to hold physical reserves-a challenge in markets with weak regulatory oversight.

Direct Competition: Can Tokenized Gold Displace Stablecoins?

To assess displacement potential, we must compare transaction volumes and user adoption in key markets. In Nigeria, stablecoins dominate daily transactions, with $59 billion in crypto activity between July 2023 and June 2024, 85% of which involved stablecoins according to Breet.io. Argentina, meanwhile, processed $93.9 billion in crypto transactions in the same period, with stablecoins accounting for over 60% of activity.

Tokenized gold, while growing, lags behind. Global tokenized gold trading volume reached $26.7 billion in Q3 2025, with XAUt and PAXG leading the market. However, specific data for Nigeria and Argentina is sparse. In Argentina, tokenized gold's role remains niche, with most users still favoring stablecoins for immediate liquidity. Nigeria's tokenization market is expanding, but adoption of gold-backed assets is still in its infancy.

Regulatory and Macroeconomic Factors

Regulatory frameworks will determine which asset prevails. Stablecoins benefit from clearer legal definitions in the U.S. and EU, while tokenized gold faces ambiguity. For example, the BIS's "tests of singleness, elasticity, and integrity" highlight stablecoins' potential to integrate into next-generation monetary systems. In contrast, tokenized gold's reliance on physical custodians may limit scalability in regions with underdeveloped infrastructure.

Macroeconomic trends also play a role. As gold prices surge to $3,800 per ounce, demand for tokenized gold is rising, particularly among institutional investors. However, stablecoins remain the preferred tool for everyday transactions in inflationary economies, where speed and accessibility outweigh the need for long-term value preservation.

Conclusion: Complement, Not Replacement

While tokenized gold offers unique advantages as a hedge against inflation and a store of value, stablecoins are likely to remain dominant in savings and remittances for the foreseeable future. Their lower barriers to entry, regulatory clarity, and proven utility in daily transactions make them indispensable in markets like Nigeria and Argentina. Tokenized gold, however, is not a competitor but a complementary asset-a tool for long-term wealth preservation that coexists with stablecoins in a diversified financial ecosystem.

For investors, the key takeaway is to view these assets as part of a broader strategy. In 2025, the winners in emerging markets will be those who leverage both stablecoins for liquidity and tokenized gold for resilience.