The following is a guest editorial courtesy of Shane Tan, Vice President Institutional Sales at Finalto Asia, an innovative prime brokerage that provides bespoke liquidity and fintech solutions.

Cryptocurrencies are often described as “digital gold,” a phrase that captures two seemingly contrasting yet complementary ideas. On one hand, they embody innovation and technological progress, the “digital” aspect. On the other, cryptocurrencies such as Bitcoin are built on a predetermined supply cap rather than intrinsic value. Advocates view Bitcoin as a form of hard money, inherently resistant to inflation and positioned as a potential safe-haven asset, much like gold.

Whatever one’s view of crypto’s long-term prospects, this pairing of technology and scarcity feels natural enough. Gold, by contrast, is regarded as staid, traditional, and resolutely physical, the very attributes that underpin its appeal as a safe store of value. It is little wonder that DeFi projects, crypto exchanges, and the rise of stablecoins dominate headlines. Yet innovation in financial instruments is not confined to new asset classes. From synthetic currency pairs to innovative exchange-traded products (including ETFs), the same technologies that have transformed digital assets are also reshaping access to established ones, including gold itself.

Innovation remains central to the evolution of our industry. Adapting our offerings to meet changing client needs is essential in a fast-moving economic and technological landscape. But innovation need not mean neglecting traditional assets in favour of the latest trends. Some of the most effective uses of technology lie in making established assets more accessible, flexible, and better suited to the markets in which clients operate, particularly in the high-speed world of FX.

Digital gold, or making gold digital?

Gold is the paradigmatic example. As an asset, it can mean refined bars locked away in vaults in New York, London, or the Swiss Alps. But it also encompasses an array of market instruments, like ETFs, derivatives, and structured products, that provide investors efficient access without requiring physical possession. While designing these instruments demands considerable expertise, the end products can be operationally straightforward to use. For example, synthetic gold ETFs allow investors to track gold’s price without the cost or complexity of holding the metal.

In the forex market, market participants are familiar with gold products ranging from spot trades and forwards to synthetic currency pairs. Yet as market conditions evolve, client needs change, and regional demand shifts, innovation must keep pace. Continually improving an offering to meet real-world demand means both anticipating changes in market structure and listening closely to clients’ goals. At Finalto, we view our Metals portfolio as a platform for innovation, combining flexibility and seamless market access, and adapting products to the environments in which they are traded.

Whether it is developing a Gold-Yen (XAUJPY) instrument to support hedging of JPY-denominated exposures, or displaying pricing in grams, ounces, and taels to align with the Asian market, we continue to look for new ways to make even our most established assets more flexible, relevant, and inclusive.

Innovate, responsibly

It’s an exciting time for the industry. Blockchain, AI, and other emerging technologies are reshaping how investors engage with markets. But innovation is not about replacing the old with the new, it’s about optimising how market participants access and manage exposures. New asset classes offer novel opportunities, but traditional ones can be just as dynamic when approached with imagination and strategic vision.

And while our industry thrives on innovation, it comes with a responsibility. Whether you are introducing a new crypto asset or a cutting-edge way to trade gold, the same timeless principles apply. The overriding mandate is to act in the client’s best interests, ensuring that every solution is grounded in transparency, robust risk management, and demonstrable market need.

For more about Finalto’s market-leading multi-currency Metals offering, email sales@finalto.com.