SmartGold, a prominent gold-backed individual retirement account (IRA) provider, in collaboration with Chintai Nexus, has taken a pioneering step in the world of decentralized finance (DeFi). As of September 2025, U.S. investors can now tokenize their gold holdings on blockchain rails, facilitating yield generation through DeFi protocols, a move that might just redefine the landscape of retirement savings.
Tokenization and Its Potential
In essence, SmartGold’s partnership with Chintai Nexus offers a groundbreaking opportunity for gold investors. By tokenizing IRA-held gold at a 1:1 ratio on Chintai’s regulated platform, investors can leverage their holdings as collateral in DeFi lending markets, including platforms like Morpho and Kamino. This process not only unlocks liquidity but also allows reinvestment opportunities, all while ensuring that the gold remains securely vaulted and insured. Crucially, the tax-deferred status of the IRA accounts remains unaffected, according to the details shared in a press release with CoinDesk.
This development addresses a longstanding challenge faced by retirement savers: gold, while a bastion of stability, typically doesn’t generate income. Historically, investors were caught in a dilemma—choosing between the tax benefits of gold-backed IRAs and the potential to deploy the metal in yield-generating strategies. IRS regulations made it nearly impossible to merge these advantages without incurring penalties.
Aaron Haley, SmartGold’s managing director, encapsulated the significance of this innovation: “For decades, gold investors have faced a difficult choice: security or yield. We’re turning the ultimate safe-haven asset into a powerful, productive tool for building wealth.”
The Broader Implications for the Market
The rollout represents one of the largest deployments of tokenized gold to date—SmartGold’s $1.6 billion in vaulted assets now available for tokenization. This move underscores a growing trend toward tokenizing real-world assets such as commodities, equities, and funds, a sector increasingly capturing the attention of major financial institutions. As explored in our recent coverage of the Tokenized Gold Market Topping $2.5B, the appeal of tokenization lies in its ability to democratize access to traditionally illiquid assets.
By placing gold on blockchain, SmartGold and Chintai Nexus are not just innovating within the IRA space but also contributing to a broader shift in how assets are managed and utilized in the financial world. As more investors seek ways to enhance liquidity and returns on their portfolios, tokenization offers a versatile tool that might redefine asset management strategies.
The Road Ahead
This initiative arrives at a time when the tokenized gold market is nearing $2.5 billion, with the precious metal itself approaching record highs. The convergence of traditional finance with blockchain technology continues to evolve, raising questions about how far this trend can extend. Will more firms follow suit, and could this lead to a broader acceptance of DeFi-based financial products in mainstream investment strategies? For a deeper dive into the rapid growth of tokenized assets, see our coverage of the 47% jump in tokenized alternative funds.
While the partnership between SmartGold and Chintai Nexus is a significant milestone, it also opens the door to new possibilities and challenges in the financial sector. The potential for increased regulatory scrutiny is ever-present, as governing bodies grapple with the implications of blockchain and DeFi on conventional financial systems.
In conclusion, as the market stands at the crossroads of tradition and innovation, the tokenization of gold for U.S. investors’ IRAs may well be a harbinger of more profound changes to come. How this will unfold remains to be seen, but one thing is clear: the intersection of gold, blockchain, and DeFi is a space to watch closely in the coming years.
Source
This article is based on: SmartGold, Chintai Tokenize $1.6B in IRA Gold, Add DeFi Yield for U.S. Investors
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
