Tokenized Gold Soars as Metal Hits Record Highs
Gold-linked digital belongings are surging as the steel’s worth climbs above $4,370 per ounce. The rally has prompted issuers to launch new blockchain-based merchandise, turning gold into an on-chain monetary instrument.
The surge displays a wider convergence between conventional commodities and digital belongings. As inflation issues and geopolitical uncertainty persist, buyers are turning to tokenized variations of gold as a steady, clear, and simply transferable hedge towards volatility.
Tether Launches XAUT0 as Gold Tokens Near $3.4B
The tokenized gold sector has grown quickly in 2025, with complete capitalization nearing $3.4 billion, up from $500 million early this yr. It is among the fastest-growing classes within the tokenization ecosystem, fueled by institutional demand for steady, asset-backed devices.
In specific, Tether expanded its lineup with XAUT0, an omnichain gold token launched on October 15 by way of the Legacy Mesh interoperability framework on Solana. The system hyperlinks Solana to Tether’s $175 billion cross-chain liquidity base throughout Ethereum, Tron, and different blockchains. As a consequence, every XAUT0 represents a fraction of a troy ounce of bodily gold held in audited vaults.
More than 7,300 XAUT0 tokens at the moment are in circulation, processing over $25 billion in complete bridge quantity, in accordance with Everdawn Labs.
“Gold-backed tokens have gotten the fastest-growing phase of tokenized belongings,” mentioned Alex Tapscott, CEO of CMCC Global Capital Markets.
He famous that each day buying and selling in tokenized gold now exceeds $600 million, mirroring robust demand for bodily bullion.
Surging Prices and Expanding Market Share
Analysts say tokenized gold bridges conventional finance and digital liquidity. Unlike bodily bars, these tokens settle immediately and combine into decentralized-finance platforms.
“Gold has a 5,000-year report as a retailer of worth,” mentioned Alex Melikhov, co-founder of BrettonWoods Labs. “Tokenization brings that reliability right into a verifiable digital format.”
PAX Gold (PAXG)—buying and selling round $4,413—has surged greater than 65% year-over-year, whereas Tether Gold (XAUT)—priced close to $4,360—has gained 63%. Their mixed market capitalization is now approaching $3.0 billion, exhibiting how bodily worth shops are shifting onto blockchains.
Moreover, common each day buying and selling for PAXG has doubled over the previous yr, surpassing $300 million, CoinGecko information present. Analysts hyperlink this momentum to institutional inflows from funds and household places of work looking for digital publicity to gold.
Regulators are slowly warming to tokenization. US SEC Chair Paul Atkins just lately mentioned, “If it may be tokenized, it needs to be tokenized,” calling it a key modernization precedence.
Still, oversight and reserve transparency stay important for investor belief.
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