The tokenized gold market has reached a significant milestone, hitting a record $2.59 billion in total market capitalization. This surge comes as physical gold prices approach their April all-time high, trading around $3,485 per ounce at press time.
Leading the tokenized gold market are Tether Gold (XAUT) and PAX Gold (PAXG), which together account for more than $2.3 billion worth of supply on the Ethereum blockchain. XAUT reached a market value of $1.3 billion after Tether's Treasury department minted 129,000 new tokens in early August, representing $437 million in new supply during the month alone. PAXG attracted $141.5 million in net inflows since June, pushing its market capitalization to $983 million.
24-hour trading volumes for tokenized gold approached $494 million, demonstrating substantial market activity. Both tokens mirrored gold's price surge, with XAUT trading around $3,475 (+3.5% in the past month) and PAXG at $3,494 (+4.0%). UGold Inc. also gained, rising 1.5% to $3,660.
The rally has been fueled by a steepening U.S. Treasury yield curve, which often pushes investors toward safe-haven assets. After weeks of sideways action, gold has climbed nearly 6% since mid-August, regaining momentum toward its April peak of approximately $3,500.
Tokenized gold offers investors simplified ownership through fractional ounces, 24/7 trading capabilities, and eliminates storage headaches. The technology also enables borderless transfers and smart contracts that automate redemption seamlessly, making it increasingly attractive to both retail investors and institutions integrating these tokens into DeFi platforms and traditional systems.