As of October 7, 2025, the total market value of tokenized gold has surged past $3.02 billion, reflecting a 2.3% gain over the past 24 hours, according to CoinGecko data. This sets a new all-time high for blockchain-backed precious metal assets, underscoring growing investor interest in gold-backed digital tokens.
Leading the market are Tether Gold (XAUT) and PAX Gold (PAXG). XAUT, issued by Tether, has seen its market capitalization approach $1.5 billion, fueled by strong investor demand and rising gold prices. PAXG, from Paxos, has also grown substantially, with a market cap of around $1.19 billion.
Together, these two tokens dominate roughly 89% of the tokenized gold market, with XAUT representing about 49.5% and PAXG around 39.6%.
The sector’s expansion is closely linked to rising gold prices, which have jumped nearly 47% this year to over $3,900 per ounce, boosting demand for tokenized alternatives that blend traditional value with crypto liquidity.
Tokenized gold market growth fueled by adoption
The record surge in tokenized gold value reflects broader adoption throughout 2025, as the asset class increasingly competes with other gold-backed digital instruments.
Trading activity has been robust, with year-to-date volumes exceeding $19 billion, driven primarily by retail and crypto-native investors. XAUT holders have surged over 150%, while PAXG holders have grown 25%, highlighting rising participation from new traders.
A major driver behind this growth is the tokenization of real-world assets (RWA). Blockchain technology enables gold stored in secure vaults to be traded seamlessly on-chain. This hybrid model combines liquidity, potential yield, and the security of physical gold, effectively bridging traditional finance and decentralized markets.
Although tokenized gold remains smaller than major ETFs like SPDR Gold Shares (GLD) in market capitalization, its rapid growth, strong trading activity, and increasing retail engagement underscore its emerging role as a liquid, on-chain alternative to conventional gold holdings.
