> For the complete documentation index, see [llms.txt](https://docs.globalgold.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.globalgold.finance/global-gold-1/global-gold-marketplace/global-gold-marketplace/why-the-marketplace-is-not-the-tokenization-engine.md).

# Why the Marketplace Is Not the Tokenization Engine

Tokenization and collateralization occur within Global Gold Tokens, not the Marketplace.

The Marketplace:

* does not mint or burn tokens
* does not perform collateralization or title transfers
* does not manage backing, supply invariants, or monetary parameters

It only provides a non-custodial interface through which exchange may occur between willing buyers and sellers of allocated assets.

This separation of concerns:

* prevents systemic risk
* preserves clean accounting
* mirrors traditional commodity market architecture
* allows each layer of the system to scale independently

The result is a marketplace that behaves like a modern, digital extension of physical bullion markets—without introducing custody, leverage, intermediation, or discretionary control.<br>