The dollar is no longer the only anchor: gold's strategic return in the era of diversified assets

Recently, at the Bloomberg New Economy Forum held in Singapore, several global Financial Institution leaders conveyed a common signal: global asset allocation is shifting from a “single currency system” to a “diversified asset system.” In this structural transformation, gold is returning to a central position in the global reserve and investment system.

Consensus Signal from Singapore Forum: The Global Asset System is undergoing “de-singleization”.

Jenny Johnson, CEO of Franklin Templeton, stated that she believes the dominance of the US dollar will not disappear in the short term, but “the real question is to what extent this dominance will be eroded,” implying that future global asset allocation should no longer rely entirely on a single currency anchor.

Danny Yong, the founder of Dymon Asia Capital, stated from an asset allocation perspective that under high debt and loose expectations, savings should not remain solely in fiat currency assets, but should be more allocated to scarce assets (such as gold and equity assets). This aligns with the recent trend of some central banks increasing the proportion of gold in their reserves: by increasing holdings of “hard assets” and non-U.S. dollar assets, structurally diversifying exposure to a single fiat currency.

Ravi Menon, the former president of the Monetary Authority of Singapore (MAS), pointed out from a systemic perspective that the public debt situation in major developed economies will worsen, stating bluntly that “so-called risk-free assets are no longer truly risk-free.” In his view, this poses a substantial challenge to the existing system that heavily relies on dollar-denominated asset pricing.

Despite the fact that the three guests come from different institutions and fields, their views show a high degree of consistency: asset allocation is shifting from a “dollar-centric” to a “multi-asset, multi-anchor” system. Gold is one of the most critical systemic assets in this transformation.

Structural loosening of the dollar's dominance: key variables driving diversification allocation

The judgments behind the experts' statements are not emotional, but rather based on a series of quantifiable long-term trends:

1. The US debt continues to rise, increasing the risk premium of the dollar.

According to data from the U.S. Treasury, the scale of federal debt in the United States has been on a long-term upward trend, and the market's debate over the pricing logic of “risk-free assets” has intensified, which has raised the global demand to counter fluctuations in the dollar.

2. Geopolitical cycles have strengthened the motivation for “de-singularization” of asset allocation.

The official reserve data from the IMF and the central bank gold survey from the WGC show that the proportion of the US dollar in global foreign exchange reserves has slightly decreased from its peak over the past few years, with some countries diversifying their exposure to the US dollar as a single asset by increasing their holdings of gold and other assets.

3. Global capital flows are becoming decentralized.

Funds are redistributed between U.S. bonds or dollar assets to diversified assets (gold, commodities, and non-U.S. equities).

“Diversification” is no longer just an asset management strategy, but is increasingly becoming a system adjustment.

The dollar system itself remains strong, but its role as the “sole center” is being redefined by diversification trends.

Central Bank Increases Gold Holdings: The Most Representative Long-Term Structural Change

Bloomberg reported on October 29, 2025, that despite gold prices being high, global central banks have continued to net increase their gold holdings this year. This trend is also consistent with the quarterly report from the WGC (World Gold Council). The continued accumulation of gold by central banks means:

● The weighting of gold in the global reserve structure has been systematically increased.

● The central bank hedges the long-term risks of a single currency system.

● Gold is once again emphasized as a “system-neutral asset”.

This is not a short-term trading behavior, but a long-term judgment on the resilience of the future monetary system.

The Repositioning of Gold in the New Currency Framework: The Unique Value of Cross-System Assets

In the emerging multi-asset framework, the value of gold is being reassessed, primarily due to the following structural characteristics:

1. Gold does not rely on the credit of any single country.

Its value is not directly affected by the policies, debts, or political risks of a single country.

2. Gold is a cross-system reserve asset (across fiat currencies, across systems, across politics)

is one of the few “neutral assets” widely accepted by both developed markets and emerging economies globally;

3. Gold is a hedge against long-term inflation and currency fluctuations.

4. Gold exists simultaneously in both the TradFi and DeFi worlds.

is one of the very few asset classes that can circulate bidirectionally between traditional finance and the digital asset ecosystem.

Therefore, the reason gold has returned to the center of the global asset system is not due to a short-term price increase, but rather the value of its cross-system attributes being re-recognized.

Structural Limitations of Traditional Gold: The “Mismatch” in the Digital Age

Despite the increasing importance of gold, there are obvious limitations in the traditional ways of holding gold:

● High costs of purchase and custody

● Low efficiency of cross-border circulation

● Unable to verify authenticity on-chain

● Cannot smoothly connect to the digital portfolio management system

● The transparency of the report relies on the custodian.

Therefore, both financial institutions and investors are looking for a gold infrastructure that is more suitable for the digital age.

On-Chain Gold: The Reshaping of Reserve Assets by Digital Infrastructure

On-chain gold represents the infrastructure upgrade of gold in the digital age, rather than asset replacement. The core value of on-chain gold lies in enabling gold to possess:

● Verifiability: The corresponding gold bar number and reserve can be directly verified on the chain.

● Liquidity: Cross-border free transfer

● Integrability: Easier to incorporate into digital asset portfolio management

● Auditability: Transparency of custody and on-chain records

It represents the third evolution of gold: from the era of physical gold, to the era of paper gold/ETF, and then to the era of on-chain gold (digital verification + physical reserves). This trend is not driven by any one company, but by the development of global asset digitization technology. In this trend, on-chain gold products like XAUm have constructed a relatively clear structured framework. Taking the digital gold XAUm issued by Matrixport's RWA platform Matrixdock as an example, its features include:

● Each XAUm corresponds to 1 troy ounce of 99.99% LBMA certified gold

● Gold is custodied by professional institutions such as Brink's and Malca-Amit.

● On-chain verifiable gold bar serial number

● Can be freely transferred between on-chain wallets

The significance of these products lies not in creating a 'new gold', but in adapting gold to a digital management approach that spans across countries, institutions, and systems.

Towards a Diversified Asset System: Gold is a Structural Stabilizer, On-Chain Gold is a Technological Extension

The speeches of experts at the Singapore forum reflected the profound changes happening in the global asset system:

● No longer solely dependent on the US dollar

● The structure of reserve assets is diversifying.

● Gold is re-recognized as the neutral anchor at the center of the system.

● Digital infrastructure will reshape the way traditional reserve assets are used.

The conclusion is clear: the role of gold has not changed, but the infrastructure of gold is undergoing profound changes. The emergence of on-chain gold allows gold to adapt to the trends of digitalization, cross-border transactions, and real-time global asset allocation. In the future structure of “multiple anchor points and multiple systems,” gold will remain central, while digital gold (on-chain gold) will become its new form of expression.