- Tokenised Gold demand is rising as gold prices exceed $4,000.
- Over $3 billion in tokenised gold is in circulation, with a 53% jump in wallet holders since the start of the year.
- Tether Gold and Paxos Gold supplies have grown by over 50% each in 2024.
- Investors are turning to gold and Bitcoin to shield against fiat currency value decline, driven by inflation and government spending policies.
- While tokenised gold attracts attention, gold ETFs still dominate with $461 billion in holdings and $64 billion in new inflows this year.
Investors are increasingly buying tokenised gold as prices for the precious metal reach over $4,000, marking the best market performance for gold in over four decades. Tokenised gold represents ownership of physical gold through digital tokens on blockchain networks.
According to CoinGecko data, the value of tokenised gold in circulation has surpassed $3 billion. The number of crypto wallets holding tokenised gold has climbed 53% since January, according to rwa.xyz. Supplies of major tokenised gold products have expanded swiftly; Tether Gold grew by 52% and Paxos Gold increased by 50% in 2024.
Gold prices have surged 54% since the start of the year, outpacing Bitcoin’s 31% growth in the same period. “Gold is on track for its strongest annual performance since 1979,” said Tom Bailey, head of research at HANetf. He added that growing fiscal pressures in advanced economies are raising concerns about rising debt and the stability of major currencies.
Interest in gold and Bitcoin is rising as investors look for assets less vulnerable to the declining purchasing power of fiat currencies, a trend sometimes called the “debasement trade.” This has been influenced further by recent policy shifts in Japan, where new Prime Minister Sanae Takaichi supports more public spending and tax cuts. Such policies are seen as negative for the Japanese yen, which could direct even more investor funds toward gold and Bitcoin.
Tokenised gold enables holders to use their assets in decentralised finance (DeFi) products on blockchains like Ethereum. “In tokenised form, gold becomes an active asset, allowing individuals to lend, borrow, and build long-term wealth without the need for a fiat currency,” explained Kevin Rusher, founder of RAAC.
Despite rising interest, tokenised gold makes up a small portion of global gold holdings. Gold exchange-traded funds (ETFs) still lead, holding $461 billion in gold and recording $64 billion in inflows so far this year, according to World Gold Council data.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Fireblocks Trust Partners with Bakkt, Galaxy to Boost Crypto Custody
- Could a Super-Fast Bitcoin Miner Become a True Market Monopoly?
- Bitcoin, Ethereum Lead $635M in Crypto Liquidations Amid Pullback
- Critical Figma MCP Vulnerability Allows Remote Code Execution Exploit
- Ethereum Eyes $4,811 Breakout as Analysts Predict $8,500 Surge
