World Gold Council said 45% of central banks plan to increase gold reserves in the next 12 months, reaching a record high

Central banks intensify gold buying trend

The same survey shows 81% of central banks believe global gold reserves will continue to rise throughout 2025. Primary motivations include geopolitical risk, a desire to hedge against inflation, and efforts to reduce dependence on the US dollar. Central banks acquired a total of 1,037 tons of gold in 2024, making it the second highest annual total on record after the 1,082 tons purchased in 2023.

According to the World Gold Council’s survey of 74 central banks, the proportion planning to buy gold in the next year has jumped to 45%, the highest recorded level to date.

The World Gold Council, a global industry body tracking gold market data and reserve trends, reports that official institutions are rebalancing their reserves not only with physical gold but with other diversified holdings as well. This shift suggests a strategic evolution in how central banks approach asset security in uncertain times.

Growing interest in Bitcoin and asset tokenization

The article highlights that the move toward hard assets is also fueling institutional demand for Bitcoin. Some institutions now regard Bitcoin as a digital alternative to gold for value storage. Notably, BlackRock’s iShares Bitcoin Trust reached $52.6 billion in assets under management by April 24, 2025, climbing to first place among spot Bitcoin ETFs in less than 15 months.

Glossary: A spot Bitcoin ETF is a fund holding direct Bitcoin exposure and traded on traditional exchanges. Tokenization refers to representing real-world assets such as gold on a blockchain in digital form.

The integration of gold and Bitcoin in institutional portfolios underscores their complementary risk profiles, supporting diversification strategies. The report also highlights rising interest not only in physical gold but in blockchain-based gold products as institutions seek new ways to hold and transfer value securely.

On-chain gold products and regulatory impact

Tokenized gold products such as Paxos Gold and Tether Gold stand to benefit from this trend. These digital assets offer investors round-the-clock access to gold representation and on-chain transfers. Exchanges and custodians are also expected to see growing demand for innovative investment solutions that blend traditional and crypto-based assets.

The report suggests asset managers could develop multi-asset products combining PAXG and spot BTC ETFs, while exchanges and custodians may encounter increasing interest in gold-crypto hybrid solutions.

The article also notes the influence of regulatory frameworks, emphasizing that under Basel III, gold is assigned a 0% risk weighting, whereas crypto assets carry higher capital requirements. This regulatory divergence could have a significant impact on the future integration of digital assets within institutional portfolios.

In this evolving environment, the balance between traditional safe-haven strategies and digital innovation appears to be reshaping how central banks and institutions allocate their reserve assets. The survey results suggest central banks are likely to maintain a dual approach, leveraging both gold and emerging technologies such as blockchain and tokenization to manage risks more effectively.

The surge in gold purchases stands out at a time when digital assets are also seeing increased institutional inflows, providing evidence of a broader shift in risk management tactics globally. By blending conventional and modern asset classes, central banks are positioning themselves to better withstand external shocks.

Ultimately, the findings from the World Gold Council’s survey point to a record appetite for gold reserves, with central banks mindful of diversifying away from the US dollar while embracing new digital finance tools. This nuanced strategy reflects a cautious optimism as institutions prepare for an unpredictable global economy.

The convergence of gold, Bitcoin, and tokenized asset markets highlights a trend where traditional and digital assets coexist in the search for stability, security, and long-term value preservation.