Monday, July 20, 2026

How Does Chainlink Verify That Tokenized Gold Is Backed by Real Gold?

Chainlink verifies tokenized gold through a system called Proof of Reserve, which pulls data from a token issuer's off-chain gold vaults and publishes it on the blockchain so anyone

  • Chainlink's Proof of Reserve system verifies tokenized gold by linking on-chain token supply to off-chain physical gold reserves, providing continuous transparency.
  • This system allows for real-time monitoring of reserves and can halt token minting if reserves fall below the circulating supply, offering a more dynamic check than traditional audits.
  • While Proof of Reserve enhances transparency, it does not replace physical audits and still relies on custodial records for ultimate verification of the gold's existence and purity.

Topics: Asset types, Infrastructure providers, Transparency audits, Alternative assets, Oracles data feeds, Proof of reserve

Tags: #chainlink #proofofreserve #tokenizedgold #paxgold #gldy #blockchain #audits #transparency #custody #oracles

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