Designing Proof of Reserves for Tokenized Gold

The report argues that Proof of Reserves (PoR) is essential for tokenized gold, highlighting the asymmetry between on-chain tokens and off-chain physical gold and outlining verification requirements—physical existence checks, supply reconciliation, legal review, and redemption integrity. It emphasizes the need for independent, frequent third-party audits, transparent public reporting, and regulatory compliance to mitigate risks like warehouse receipt fraud, rehypothecation, custodial failures, and weak operational security.