Tokenized gold market tops $6B, led by XAUT and PAXG

Tokenized gold tops $6B in market cap, led by Tether Gold and Paxos Gold. Over 1.2M ounces of bullion back these digital assets, reflecting rising demand for blockchain-based hard assets.

The tokenized gold market has surpassed $6 billion in total market capitalization, gaining approximately $2 billion since the start of the year. This surge comes amid ongoing volatility in physical gold prices and global economic uncertainty, as investors increasingly seek blockchain-based exposure to hard assets. Currently, over 1.2 million ounces of physical gold are held in custody to back these digital tokens. This approach merges the security of traditional bullion with the convenience and liquidity of digital assets. The market remains highly concentrated, with Tether Gold (XAUT) and Paxos Gold (PAXG) accounting for about 96.7% of the sector. XAUT leads with a $3.5 billion market cap, while PAXG follows at $2.3 billion. Tether has notably increased its gold reserves, adding 27 metric tons and introducing features like the Scudo unit to boost accessibility. This growth reflects a shift in investor strategy, blending safe-haven assets with digital innovation.