Tokenized Gold Hits Record Market Cap of $2.57B

The market for tokenized gold has reached new all-time highs, crossing $2.57 billion in market cap, as spot gold itself approaches its April peak. The rally shows renewed demand for gold-backed crypto tokens as investors seek safe haven assets amid global uncertainty.

XAUT and PAXG lead the charge

The two largest gold-backed tokens, Tether’s XAUT and Paxos’ PAXG, drove the growth. Tether minted 129,000 new XAUT tokens in early August on Ethereum, adding $437 million to its supply and pushing its market size to a record $1.3 billion. 

Meanwhile, Paxos’ PAXG token swelled to $983 million, boosted by $141.5 million in net inflows since June. That growth reflects rising investor appetite for physically backed digital assets that track the price of gold while benefiting from blockchain’s liquidity and accessibility.

Tokenized gold’s price momentum

Gold itself is trading around $3,470, just shy of its April 22 peak, buoyed by macroeconomic conditions. Analysts point to the steepening U.S. Treasury yield curve and heightened market volatility as catalysts pushing investors back into safe haven assets.

This environment has created a feedback loop: as traditional gold prices rise, demand for tokenized versions grows, expanding their market share in the crypto ecosystem.

Tokenized assets go mainstream

The surge proves the broader narrative of real-world assets coming on-chain. Tokenized gold provides a bridge between traditional commodities and DeFi, offering investors both the reassurance of physical backing and the flexibility of blockchain-native assets. With XAUT and PAXG collectively controlling over 90% of the tokenized gold market, their continued growth suggests gold-backed tokens are carving out a permanent niche in the digital asset landscape.