A comprehensive report from cryptocurrency exchange CEX.IO reveals that tokenized gold emerged as the standout performer in the real-world asset (RWA) market in 2025, accounting for a quarter of the sector's net growth and achieving trading volumes that rivaled traditional gold exchange-traded funds (ETFs).
The market capitalization of tokenized gold assets surged by 177% over the year, expanding from approximately $1.6 billion to $4.4 billion. This $2.8 billion net increase represented roughly 25% of all net RWA growth in 2025. In stark contrast, the broader DeFi market struggled, with Total Value Locked (TVL) rising by just 2%, while the overall RWA sector grew by an impressive 184%.
Trading activity tells an even more compelling story. Total trading volume for tokenized gold skyrocketed by 1,550% year-on-year, reaching $178 billion for the full year. The fourth quarter alone saw volume exceed $126 billion, which surpassed the combined trading volume of five major gold ETFs. The report estimates that, by trading volume, tokenized gold would rank as the second-largest gold investment vehicle globally, trailing only the SPDR Gold Shares (GLD) ETF.
The sector also saw massive adoption, with the number of tokenized gold holders increasing by 198%, adding more than 115,000 new wallets. This growth outpaced other RWA categories like tokenized U.S. Treasuries. Notably, tokenized gold expanded 2.6 times faster than physical gold, which itself had a strong year amid inflation concerns and geopolitical uncertainty.
Despite the rapid expansion, the market remains highly concentrated. The top three tokenized gold assets—Tether Gold (XAUT), Pax Gold (PAXG), and Kinesis Gold (KAU)—control about 97% of the total market cap. Trading volume is even more concentrated, with the top four assets accounting for 99% of all activity. XAUT dominated late 2025, representing 75% of total Q4 volume, a significant jump from 27% in Q3, following a reserve attestation that boosted market confidence.
The report positions tokenized gold not as a direct competitor to stablecoins, but as a tactical hedge. During periods of market stress, traders appear to rotate capital into tokenized gold as a middle ground between risk-on crypto assets and risk-off stablecoins. CEX.IO concludes that 2025 marked a turning point, transforming tokenized gold from a niche category into a large-scale, liquid component of both the RWA and global gold investment landscapes.
