LayerZero Partners With Korea Gold Exchange on Multichain Expansion of KGLD

LayerZero has partnered with Korea Gold Exchange to support the multichain expansion of KGLD, a token backed by physical gold.

LayerZero said April 16 that it is working with Korea Gold Exchange Digital Asset as a technology partner on the multichain deployment of KGLD, a tokenized gold asset. The project links gold, a traditional safe-haven asset, with blockchain-based financial infrastructure and marks a notable case in the expansion of Asia's real-world asset market.

KGLD is issued based on physical gold held by Korea Gold Exchange. It uses LayerZero's Omnichain Fungible Token, or OFT, standard, which allows a single token and single supply structure to function across multiple blockchains. Unlike wrapped or synthetic models, the design simplifies the token structure while keeping supply and policy management consistent.

The structure allows KGLD to be used across different blockchain environments without being tied to a single network. The issuer can directly control verification procedures, regulatory compliance and transfer policies, creating infrastructure designed for institutional use.

Gold tokenization is drawing attention as an effort to bring the roughly $13 trillion global gold market onto blockchain infrastructure. Gold is a core safe-haven asset held by central banks and institutions, and Asia accounts for more than half of global demand. Demand for gold-based digital assets has been rising against that backdrop.

KGLD plans to broaden its use cases across multiple blockchain networks, including listings on global exchanges, DeFi, payments and financial services for institutions. The project aims to build a digital-asset model that addresses trading delays, fragmented liquidity and accessibility constraints in the traditional gold market.

Lim Jong-gyu, head of LayerZero Asia, said the partnership with Korea Gold Exchange would help establish a leading example of gold tokenization. He added that the company plans to expand the on-chain transition of other real-world assets, including stocks, bonds and real estate.

Lee Sang-yoon, chief executive officer of Korea Gold Exchange Digital Asset, said LayerZero's technology played a key role in enabling gold-based financial services in a multichain environment. He added that the company plans to expand KGLD into a broader range of financial services and develop it into a leading real-world asset case in Asia.