- Tokenized gold market cap exceeds $6B, rising over $2B year-to-date as gold-backed tokens gain investor demand.
- Tether Gold (XAUT) and Paxos Gold (PAXG) hold about 96.7% of the total tokenized gold market share.
- More than 1.2 million ounces of physical gold are locked to back circulating tokenized gold supply.
$6B in Tokenized Gold Signals a Major Shift in Crypto Risk Strategy. The total market capitalization of tokenized gold has surpassed $6 billion, increasing by more than $2 billion since the beginning of the year.
The rise reflects growing demand for blockchain-based assets backed by physical commodities during a period of volatile crypto prices and broader macroeconomic uncertainty.
Tokenized Gold Market Crosses $6 Billion
Industry data shows that tokenized gold now represents over $6 billion in total market value. This marks a sharp increase compared to levels recorded at the start of the year. The sector has expanded as gold prices test new highs in traditional financial markets.
Tokenized gold products are digital tokens backed by allocated physical gold reserves. These reserves are stored by regulated custodians and audited under issuer guidelines. Each token typically represents one troy ounce of gold held in vaults.
More than 1.2 million ounces of physical gold are currently locked to support circulating token supply. Blockchain technology enables near-instant settlement and transparent transfers. Investors can gain gold exposure without managing physical storage or logistics.
XAUT and PAXG Control Most of the Market
According to Wu Blockchain, Tether Gold (XAUT) and Paxos Gold (PAXG) together account for approximately 96.7% of the tokenized gold sector. Their combined dominance places them at the center of trading activity and liquidity. Both tokens operate on public blockchain networks and are accessible through major crypto exchanges.
Each XAUT and PAXG token is backed by specific gold bars held in professional vaults. Issuers publish reserve information and provide mechanisms for redemption under set conditions. This structure links digital tokens directly to physical assets.
Smaller tokenized gold projects hold only a limited share of total value. The two leading tokens dominate the market, and traders concentrate liquidity around them. As demand grows, these products continue to attract new capital inflows.
Crypto Risk Strategy Shows Diverging Trends
The expansion of tokenized gold reflects changing investor behavior in digital asset markets. Some market participants are shifting toward assets perceived as more stable. Gold-backed tokens provide exposure to a long-standing store of value while remaining fully on-chain.
At the same time, activity in higher-risk crypto assets continues. Volatile market conditions have not reduced interest in speculative trading strategies. Capital flows indicate that both defensive and aggressive positions are active in parallel.
The growth of tokenized gold suggests that investors are balancing portfolios across risk categories. On-chain commodities now play a larger role in digital asset allocation. Market participants increasingly use blockchain infrastructure to access traditional financial instruments.
Source: https://www.livebitcoinnews.com/6b-in-tokenized-gold-signals-a-major-shift-in-crypto-risk-strategy/
