Tokenized Gold Price Surges 53% to $6.1B in Six Weeks

Key Insights:

• Tokenized commodities added $2 billion this year, led by the tokenized gold price.
• Gold-backed tokens drove most market growth.
• Bitcoin lagged as gold hit record levels.

Token Terminal data showed the tokenized commodities market rose 53% in under six weeks to over $6.1 billion. The move made it the fastest-growing segment within real-world asset tokenization. Growth accelerated as investors rotated toward gold-backed tokens during crypto market weakness.

The tokenized commodities market expanded rapidly while other tokenized asset classes posted slower gains. This shift occurred because gold prices rallied sharply while Bitcoin struggled to hold key resistance. The divergence reshaped capital flows across digital asset markets.

Token Terminal records showed the market started the year slightly above $4 billion, meaning about $2 billion entered the sector since Jan. 1. Gold products dominated nearly all new inflows during that period. Investors favored exposure tied to bullion rather than tokenized equities or funds.

Tether’s XAUt token increased 51.6% over the past month to reach $3.6 billion in market capitalization. Paxos-listed PAX Gold gained 33.2% over the same timeframe to $2.3 billion. Those two instruments accounted for the bulk of sector expansion as capital concentrated into liquid gold proxies.

Year-on-year growth reached 360%, outpacing tokenized stocks and tokenized funds, which grew 42% and 3.6% respectively, this year. The tokenized commodities market now stands at just over one-third the size of the $17.2 billion tokenized funds segment. Tokenized stocks remained comparatively small at $538 million.

Gold Price Divergence Strengthened XAU Appeal

Spot market data showed gold rallied more than 80% over the past year, reaching an all-time high of $5,600 on Jan. 29. A short pullback pushed prices to around $4,700 earlier this month before buyers stepped back in. The metal later traded near $5,050 at the time of writing.

CoinGecko data showed the asset fell 52.4% from its early October peak of $126,080 to roughly $60,000 before stabilizing. It later rebounded toward $69,050, though sentiment remained cautious across derivatives markets.

That divergence occurred as traditional safe-haven demand strengthened while crypto risk appetite weakened. The crypto market crash on Oct. 10 triggered $19 billion in liquidations, reinforcing defensive positioning. Investors appeared to treat Bitcoin more like a growth-sensitive asset than a monetary hedge.

Strike Chief Executive Officer Jack Mallers said recent price behavior suggested Bitcoin still traded like a software stock. Grayscale echoed that view, stating that the “digital gold” narrative faced pressure as price action resembled that of high-risk equities rather than defensive assets.

Tether Expanded Its Tokenized Gold Strategy

Tether announced Thursday that it had acquired a $150 million stake in the precious metals platform Gold.com. The move followed strong demand for tokenized bullion exposure and aimed to broaden access to digital gold products. The company said XAUt would integrate into Gold.com’s platform infrastructure.

Tether also explored enabling customers to purchase physical gold using USDt stablecoin. That initiative suggested deeper ties between on-chain liquidity and traditional bullion markets. The strategy positioned tokenized gold as a bridge between stablecoins and physical asset settlement.

The product expansion occurred while Bitcoin consolidation continued and macro uncertainty persisted. Tokenized commodities benefited from that backdrop because they offered blockchain settlement combined with exposure to hard assets. Builders focused on linking token rails to real inventory and custody frameworks.

Market participants now watch whether gold maintains upward momentum while Bitcoin attempts to hold support near recent recovery levels. Continued strength in bullion could sustain demand for tokenized commodities. A reversal in crypto sentiment, however, may redirect capital back toward higher-volatility assets.