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Tokenized Gold Market Cap Hits $2.57B as Gold Price Surges

Tokenized Gold Market Hits Record $2.57 Billion as XAUT and PAXG Surge Amid Economic Uncertainty

  • The market value of crypto tokens backed by Gold reached a new high of $2.57 billion.
  • Tether’s XAUT supply rose by $437 million, hitting $1.3 billion in market capitalization.
  • Paxos’ PAXG gold-backed token increased to a record $983 million due to recent inflows.
  • The surge comes as gold prices approach their April peak, trading near $3,470 per ounce.
  • Gold’s popularity as a safe haven asset grows amid global economic uncertainty and changing U.S. Treasury yields.

Tokenized gold, which refers to cryptocurrencies backed by physical gold reserves, saw its total market capitalization climb to an all-time record of $2.57 billion this week. The increase follows strong investor inflows into major products like Tether’s XAUT and Paxos’ PAXG tokens.

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Data from CoinGecko indicates that XAUT supply grew by $437 million, reaching $1.3 billion. Early August saw Tether minting 129,000 new tokens on the Ethereum network, according to Etherscan blockchain data. These tokens are backed by physical gold bars held in vaults.

PAXG, the gold-backed token from U.S. company Paxos, also grew sharply—reaching a record market size of $983 million. According to DefiLlama, net inflows to PAXG since June have totaled $141.5 million. This growth is shown in recent monthly inflow data.

Gold itself was trading at nearly $3,470 per ounce, just shy of its previous high from April. The asset’s climb has been attributed to increased demand for safe havens as economic conditions remain uncertain. Analysts attribute part of the momentum to a steepening yield curve for U.S. Treasury bonds.

Physical gold and its digital equivalents, like XAUT and PAXG, often attract more buyers during periods of instability. Many investors use these tools to shield wealth from market volatility or inflation.

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The trend highlights growing interest in digital assets tied to real-world commodities, especially as traditional markets face continued uncertainty.

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