Digital Gold and Tokenised Gold: What is the difference?

Many people searching for the “best gold trading app in India” encounter products called digital gold, tokenised gold, gold-backed crypto or gold futures.

These products are not interchangeable.

Digital Gold Apps:

Digital-gold platforms typically allow users to purchase small quantities of gold while a service provider or partner claims to store corresponding physical gold on the user’s behalf.

However, SEBI issued a specific caution on November 8, 2025.

SEBI stated that online digital-gold or e-gold products:

1) are not notified as securities,

2) are not regulated as commodity derivatives,

3) operate outside SEBI’s purview, and

4) do not receive the investor-protection mechanisms available under the securities-market framework.

Therefore, do not assume that a digital-gold product is SEBI-regulated simply because it can be purchased through a well-known app.

Evaluate the provider, custody structure, ownership terms, redemption rules and counterparty risk before buying.

Tokenised Gold 

Tokenised gold refers to crypto assets designed to represent exposure to physical gold or its price.

Examples include Tether Gold (XAUT) and PAX Gold (PAXG).

These products should not be confused with SEBI-regulated Gold ETFs or EGRs.