Tokenized gold market value surpasses $3b, sets record high
Tokenized gold has reached a major milestone, signaling the asset class’s rapid ascent as investors embrace blockchain-based forms of the precious metal.
- The total market value of tokenized gold has reached $3.02 billion as of October 2025, marking a new record for blockchain-based gold assets.
- Tether Gold (XAUT) leads the market, with its capitalization near $1.5 billion, while PAX Gold (PAXG) stands at approximately $1.19 billion, together accounting for 89% of the market.
The total market value of tokenized gold has surpassed $3.02 billion as of October 7, 2025, posting a 2.3% increase over the past 24 hours according to CoinGecko data. This marks a new all-time high for blockchain-based precious metal assets, highlighting increasing investor demand for assets backed by physical gold.
Among the leading tokens in this space are Tether Gold (XAUT) and PAX Gold (PAXG). XAUT, issued by USDT stablecoin issuer Tether, has seen its market capitalization approach $1.5 billion, driven by significant investor interest and the broader rise in gold prices. PAXG, issued by Paxos, has also experienced substantial growth, with its market cap reaching approximately $1.19 billion.
Together, these two tokens dominate roughly 89% of the tokenized gold market, with XAUT accounting for approximately 49.5% and PAXG around 39.6%.
The sector’s growth is closely tied to rising gold prices, which have climbed nearly 47% this year to above $3,900 per ounce, fueling demand for tokenized alternatives that combine traditional value with crypto liquidity.
Rising adoption drives tokenized gold market expansion
The surge in tokenized gold market value builds on increased adoption throughout the year. The asset class has grown significantly in 2025, increasingly rivaling other gold-backed digital assets.
Trading activity is strong, with over $19 billion in volume year-to-date, largely driven by retail and crypto-native investors. XAUT holders have grown by more than 150%, while PAXG holders increased 25%, showing rising adoption among new traders.
The growth of real-world asset (RWA) tokenization has been a key driver for tokenized gold. Blockchain technology allows gold stored in secure vaults to be exchanged seamlessly on-chain. This hybrid approach offers liquidity, yield opportunities, and the security of physical gold, bridging traditional finance with decentralized markets.
While tokenized gold still trails major ETFs like SPDR Gold Shares (GLD) in market capitalization, its rapid growth, high trading volumes, and rising retail participation highlight its growing role as a liquid, on-chain alternative to traditional gold holdings.
