Tokenized Gold Market Cap Approaches $2 Billion as Tariff Fears Drive Safe Haven Investments

In recent financial turmoil, where risk assets, including cryptocurrencies, faced significant challenges, tokenized gold has emerged as a leading performer. As of Wednesday, the market capitalization of gold-backed tokens soared to just under $2 billion, reflecting a 5.7% increase over the past 24 hours, according to data from CoinGecko. This rally coincided with the price of physical gold briefly reaching a new all-time high of over $3,170 per ounce, as reported by TradingView.

The Surge in Tokenized Gold Trading Volume

The recent market dynamics have led to a surge in activity and demand for gold tokens. Over the past week, the trading volume for tokenized gold exceeded $1 billion, marking the highest level since the banking crisis in the U.S. in March 2023, according to a report from the digital asset platform CEX.IO. The two leading tokens in this sector, Paxos Gold (PAXG) and Tether Gold (XAUT), accounted for the majority of this market. Their weekly trading volumes skyrocketed by over 900% and 300%, respectively, since January 20, as per the report citing CoinGecko data.

PAXG and Tether Gold Experience Extraordinary Growth

Paxos Gold (PAXG) has seen an influx of investment, with total inflows reaching $63 million during this recent surge, as highlighted by DefiLlama data. This growth reflects a broader trend in the market, where the value of physical gold has risen significantly due to geopolitical uncertainties and inflation concerns. In 2025, gold prices posted double-digit gains, reinforcing its status as a safe haven asset.

However, it’s important to note that even gold experienced volatility during the recent market-wide sell-off prompted by U.S. tariffs, with prices momentarily dropping by 6% before rebounding to record highs. This highlights the resilience and importance of gold, both in its physical form and as a tokenized asset.

Tokenized Gold vs. Other Crypto Assets

Since the inauguration of Donald Trump, tokenized gold has consistently been one of the cryptocurrency sector’s top performers, showcasing a 21% increase in its market cap. In contrast, stablecoins have only seen a modest 8% increase, while Bitcoin faced a decline of 19%, and the total cryptocurrency market has lost 26% of its value.

The Advantages of Tokenized Gold for Crypto Investors

“Tokenized gold is emerging as one of the key diversification strategies among crypto-native users, alongside Bitcoin,” stated Alexandr Kerya, VP of product management at CEX.IO. “It provides a safer and more stable approach to portfolio management, enabling users to stay within the crypto ecosystem while benefiting from the value and stability of the underlying physical asset.”

This sentiment speaks volumes about the utility of tokenized gold in today’s volatile market. As more investors seek ways to hedge against economic uncertainty, tokenized gold offers an attractive solution while maintaining a connection to the digital asset space.

Accessibility and the Real-World Asset (RWA) Narrative

Kerya further elaborated on the broader Real-World Asset (RWA) narrative, emphasizing its role in making gold exposure more accessible and intuitive for users who may not have previously considered it. This approach not only democratizes access to gold but also aligns with the growing interest in integrating traditional assets within the cryptocurrency space.

Conclusion: The Future of Tokenized Gold

As tariff fears continue to loom over global markets, the rise of tokenized gold presents an exciting opportunity for cryptocurrency investors seeking stability. With its market cap nearing $2 billion and trading volumes hitting unprecedented levels, tokenized gold is set to play a crucial role in the future of the crypto landscape. Its performance stands as a testament to the enduring appeal of gold as a safe haven asset, even in an increasingly digital financial world.

For those interested in diversifying their portfolios, exploring how to invest in tokenized gold could be a strategic move. As always, it’s essential to conduct thorough research and consider the implications of investing in such assets, especially in a rapidly evolving market.

For further insights, consider checking our guides on how to buy cryptocurrency and Bitcoin ETFs to better understand the landscape.

Disclaimer: This article, or parts of it, was generated with assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.