The gold bars that I have collecting dust in the bank safe, along with the numbers in the treasury bond account, have suddenly found a new way to live recently – they can actually "work part-time" on-chain to earn extra money.

As someone who has been jumping back and forth between traditional finance and the crypto world, I've come up with an interesting way to play: those physical assets that have been stagnant for years can not only slowly appreciate in the traditional market but can also be revitalized in the DeFi world. This all started with a "traditional asset on-chain" solution I recently came across.

**Gold is no longer just an ornament in the cabinet**

I have a small gold bar in my hands, and every year it only does two things: sleep in the safe and make me pay storage fees. Until I discovered a new way - to tokenize physical gold through a reliable custodian and then throw it into the protocol as collateral to mint stablecoins for use.

The essence of this operation lies in the fact that the safe-haven property of gold remains, while simultaneously gaining the liquidity of stablecoins. When the market is volatile, the value of gold provides support; when cash flow is needed, stablecoins can be mobilized at any time. Gold bars no longer have to be the "money guard" on standby 24 hours a day, but have transformed into a liquidity tool that works around the clock.

**Can government bonds also play DeFi?**

What surprised me even more is that government bonds, this "IOU backed by the state," can actually be tokenized and moved on-chain. Everyone understands the problems with traditional government bonds: long lock-up periods, poor liquidity, and having to wait until maturity or find a secondary market to cash out. But what about after tokenization?