Discover how MKS PAMP bridges tradition and innovation with tokenized gold

The infrastructure bridge: legal title and institutional trust

MKS PAMP is a global family business that operates one of the most renowned refineries in the world.

By launching the DGLD token on the Base network, Coinbase’s Layer 2 blockchain, in mid-December 2025, GTSA effectively bridged the gap between 60 years of Swiss precious metals heritage and US-centric blockchain technology.

Unlike speculative crypto tokens, “DGLD is designed to represent allocated physical gold rather than a claim on an issuer,” prioritizing the institutionalization of real-world assets through transparent governance, Hemecker said.

“That design approach is important in jurisdictions like the US, where regulators are still clarifying the boundaries between securities and other digital assets,” he added. The prominence of physical gold reduces ambiguity, giving institutions clear legal ownership of specific domed bars, not issuer promises or derivatives.

According to Hemecker, this structure deserves the support of policymakers as “controlled tokenization, where digital representations of existing assets are well managed and clearly supported, rather than creating new, untested monetary alternatives.” Investors are gaining direct ownership rights to high-security Swiss vaults, outpacing tech-first rivals.

Transparency serves as a competitive advantage in this new era of digital commodities. Gold investors, who have traditionally been obsessed with provenance, can use GTSA’s Bar Mapper tool. This technology allows a digital holder to trace their token back to specific gold bars certified by the London Bullion Market Association

Users can view non-sensitive metadata including the refinery, weight, purity and serial number of the bars, providing a level of auditability previously impossible in the gold market. This creates a transparent link between digital ownership and physical existence, ensuring that each token is backed by real, verifiable gold.

Overcoming obstacles

The operational hurdles that once plagued tokenization are quickly fading. “Several early frictions are already subsiding,” Hemecker said. “Operational and technical uncertainty is decreasing as standards around custody, issuance and lifecycle management mature. Institutional access improves and credibility gaps narrow.

This maturity ensures a shift from experimental pilots to institutional balance sheet allocations.

“What we see among institutions and central banks is not a move away from traditional safe havens, but a desire to modernize the infrastructure around them,” he explained. Blockchain’s 24/7 availability, near-instant settlement, and efficient reporting maintain gold exposure while accelerating infrastructure.

“Tokenized gold allows institutions to maintain exposure to known reserve assets while benefiting from faster settlement… This is about putting trusted assets on modern rails.”

Liquidity will follow. “Liquidity will increasingly be assessed based on depth and reliability, and not on nominal volumes,” Hemecker said. “Custody quality will come to the fore, with institutions favoring allocated, insured gold held with reputable vault partners.” DGLD delivers this through the non-stop trading of Base and Aerodrome DEX.

Finally, redemption seals trust: “Repayment down to 1 gram increases accessibility and usability for collateral, loans, repos and more. Redemption builds trust, but tokenization is where the real utility comes from.”

The regulatory landscape

The regulatory landscape continues to play a crucial role in the adoption of tokenized gold.

Although GTSA is a Swiss-regulated entity overseen by FINMA standards, its presence on the Base network demonstrates strategic navigation of global demand.

“Regulatory trends are likely to support the adoption of tokenized gold by rewarding transparent, well-governed structures that fit within existing financial and commodity frameworks,” Hemecker said. “Products with clear management, governance and legal ownership are simply easier for institutions to review and approve.”

The GENIUS Act, passed in the US in 2025, clarifies stablecoin rules, prioritizing 1:1 reserves and audits, favoring insured custody like that of MKS PAMP. The proposed CLARITY Act would split the powers of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), classifying some assets as “digital commodities.”

Last January, the SEC and the CFTC held a joint harmonization event to align digital asset oversight, while the CLARITY Act awaits Senate action after House passage in 2025.

Looking ahead

Looking ahead, Hemecker thinks the trend favors “consolidation rather than proliferation.”

As he explained to INN: “Demand for tokenized gold is likely to grow steadily, with adoption focused on a smaller number of high-quality, well-managed products.”

Tokenization can improve traceability and data continuity, helping secondary markets such as recycled gold. It connects the value chain from mine to vault to wallet, but needs “standards, audits, operational integration and regulatory alignment” for true transparency, according to Hemecker.

For mining and finance, DGLD is modernizing the Swiss gold standard.

“Our focus… is on building the foundation… so it is ready to scale responsibly,” Hemecker said.