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The global market for tokenized gold has reached a historic milestone, with its total market capitalization climbing to $3.02 billion, marking an all-time high and a 2.3% increase from the previous day, according to data released Monday.
📊 NEW: Tokenized gold’s total market cap hit a record $3.02B. pic.twitter.com/t5Fh6PaHkm
— Cointelegraph (@Cointelegraph) October 7, 2025
Tokenized gold represents digital assets backed by physical gold reserves, enabling 24/7 trading and instant settlement via blockchain technology — a modern twist on one of the world’s oldest stores of value.
Gold’s Record Rally Drives Tokenized Growth
The explosive growth of tokenized gold is tightly linked to the record-breaking surge in spot gold prices. Gold has risen nearly 47% year-to-date, surpassing $3,900 per ounce, and briefly broke the $4,000 mark on October 7 — a historic psychological threshold.
The rally is being fueled by global economic uncertainty, geopolitical tensions, and expectations of further interest rate cuts by the U.S. Federal Reserve, which have driven investors toward safe-haven assets. The weakening of the U.S. dollar has further amplified demand for both physical and digital gold.
Market Dominated by Tether Gold (XAUT) and PAX Gold (PAXG)
Two tokens dominate the sector, Tether Gold (XAUT) and PAX Gold (PAXG), together accounting for nearly 89% of the total market.
- XAUT holds a market capitalization of about $1.5 billion
- PAXG follows closely with $1.19 billion
Both tokens are primarily issued on the Ethereum (ETH) blockchain, benefiting from its deep liquidity and infrastructure maturity.
Liquidity in the tokenized gold market has surged alongside this growth. In September 2025, PAXG recorded over $40 million in net inflows, with monthly trading volume exceeding $3.2 billion. XAUT followed with $3.25 billion in monthly volume.
Notably, XAUT’s market cap expansion stems solely from underlying gold price appreciation rather than new token issuance, as the last minting occurred in August 2025, worth $437 million.
Outperforming Bitcoin: Gold’s Digital Twin Gains Momentum
While Bitcoin (BTC) , often dubbed “digital gold” , has posted a 22% gain year-to-date, it trails behind the 47% return of real gold and its tokenized equivalents.
The fusion of traditional safe-haven assets with blockchain efficiency and borderless access has made Real-World Asset (RWA) tokenization one of the fastest-growing sectors in digital finance. Analysts expect institutional interest to continue rising as investors seek stability amid volatile macroeconomic conditions.
