A sophisticated trader has placed a $4.17 million bet on tokenized gold, acquiring 843 XAUT tokens as the precious metal approaches the historic $5,000 per ounce level. Blockchain analytics firm Lookonchain tracked the transaction, which involved depositing $7 million in USDT on the Bybit exchange and converting it entirely into XAUT tokens. Each XAUT token represents direct ownership of one troy ounce of physical gold stored in secured Swiss vaults.
The timing of this whale trade coincides with gold's dramatic rally, currently trading near $4,941 per ounce—a $2,171 increase year-over-year. Analysts project gold could reach $5,000 by late 2026 and potentially $6,000-$7,000 in the longer term, driven by sustained investor and central bank demand.
This move highlights a significant shift in how institutional investors access precious metals. Tokenized gold has emerged as a standout performer in the real-world asset (RWA) sector, with total value locked surging from approximately $1 billion to over $4 billion in 2026. XAUT offers advantages including fractional ownership, elimination of storage costs, and 24/7 global trading.
Macroeconomic catalysts are fueling institutional accumulation across both traditional and tokenized gold markets. Geopolitical tensions, concerns about central bank independence, unresolved trade conflicts, and expectations of Federal Reserve rate cuts in the second half of 2026 are creating favorable conditions for gold. J.P. Morgan forecasts central banks will purchase approximately 755 tons of gold in 2026.
Meanwhile, Aurelion CEO Björn Schmidtke warns that 98% of gold investors own "paper gold" (ETFs and derivatives) rather than allocated physical gold, creating systemic risk. In a crisis where investors demand physical delivery, the lack of clear ownership documentation could cause market ruptures. Schmidtke argues that on-chain gold tokens like XAUT solve this by providing immutable proof of ownership linked to specific gold bars.
Aurelion has overhauled its treasury to hold 33,318 XAUT tokens worth approximately $153 million, viewing tokenized gold as a "durable" ownership solution that combines digital transaction speed with physical settlement capability. The company plans to raise additional capital to expand its gold treasury holdings in the coming year.
