Tokenized Gold Market Surpasses $2 Billion Milestone

The gold-backed token market is thriving, riding the wave of rising global gold prices. The total market capitalization of tokenized gold has surpassed $2.07 billion.

Leading the charge are Tether Gold and Paxos Gold, whose combined market dominance is evident. Paxos Gold (PAXG) reached an all-time high of $3,729, pushing its market cap above $1.08 billion. Tether Gold (XAUT) closely followed, hitting $3,722 with a market cap exceeding $917 million. Both tokens have seen over 40% growth in the past year. Additionally, Tether Gold Tokens (XAUT0) hold a market cap of over $3.7 million.

Tokenized gold represents digital assets backed by physical gold, enabling blockchain-based access to gold without direct physical ownership. Internationally, gold prices have soared to record highs above $3,700 per ounce.

While the tokenized gold market remains a fraction of the global gold market (estimated at $25 trillion), it’s rapidly expanding within the cryptocurrency and tokenized asset space. Tether’s reports highlight surging demand driven by macroeconomic factors: heightened global instability, escalating geopolitical conflicts, and growing demand for inflation-resistant assets.

Both Tether Gold and Paxos Gold tokens are pegged 1:1 to physical gold ounces. Tether stores its gold reserves in Switzerland, while Paxos holds theirs in London. In 2025, gold tokens emerged as a standout use case in the cryptocurrency market, with trading volumes skyrocketing.

Beyond gold-pegged tokens, the broader stablecoin market includes tokens tied to fiat currencies and other commodities. The most prominent is Tether’s USDT, launched in 2014.

In Vietnam, the government’s Resolution 05 initiated a five-year pilot phase for the cryptocurrency market. According to Michael Kokalari, CFA, Director of Macroeconomic Analysis and Market Research at VinaCapital, this signals official recognition of digital assets.

VinaCapital observes a distinct shift in momentum. Accelerated activity includes frequent regulator dialogues, industry events, and the launch of NDAChain, reflecting a move toward integrating digital assets into the formal financial system.

VinaCapital emphasizes Vietnam’s foundation-building for a digital economy extending beyond cryptocurrency transactions. Tokenization and blockchain applications will benefit sectors like supply chain management, renewable energy, and real estate by enabling new capital-raising models. Additionally, assets like carbon credits and trade invoices will gain enhanced liquidity.