Tokenized Gold Tops $2.5B as XAUT & PAXG Rally
Tokenized gold market capitalization has surged past $2.5 billion as on-chain gold prices approach record highs near $3,500 per ounce. Tether’s XAUT and Paxos’ PAXG lead the expansion, with XAUT supply rising $437 million to a record $1.3 billion in August and PAXG drawing $141.5 million in net inflows since June, lifting its market value to $983 million. The rally reflects renewed safe-haven demand amid a steepening US Treasury yield curve and broader market uncertainty. Blockchain-based gold tokens offer traders fractional ownership, 24/7 liquidity and transparent auditability. Recent regulatory clarity from the US GENIUS Act further legitimizes digital precious metals and has drawn increased institutional participation. This surge underscores growing institutional and retail interest in tokenized gold, likely boosting short-term trading volumes and supporting long-term adoption of gold-backed crypto instruments.
Bullish
Increased demand for tokenized gold amid near-record prices and regulatory clarity from the GENIUS Act has driven significant inflows into XAUT and PAXG. Higher minting volumes and legislative support enhance liquidity and credibility, encouraging both institutional and retail participation. This positive environment is likely to lift token prices in the short term and underpin sustainable growth, making the outlook bullish for gold-backed tokens.