Gold-linked digital assets are experiencing a significant upswing as the metal’s price surpasses $4,370 per ounce. This surge has led issuers to introduce new blockchain-based products, transforming gold into an on-chain financial asset.
The increase signifies a broader merging of traditional commodities with digital assets. Amid ongoing inflation worries and geopolitical instability, investors are gravitating towards tokenized gold as a stable, transparent, and easily transferable safeguard against market volatility.
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Tether Launches XAUT0 as Gold Tokens Approach $3.4B
The tokenized gold market has seen rapid growth in 2025, with total capitalization nearing $3.4 billion, up from $500 million earlier this year. This is one of the fastest-expanding sectors in the tokenization landscape, driven by institutional demand for stable, asset-backed instruments.
Specifically, Tether has broadened its offerings with XAUT0, an omnichain gold token launched on October 15 through the Legacy Mesh interoperability framework on Solana. This system connects Solana to Tether’s $175 billion cross-chain liquidity across Ethereum, Tron, and other blockchain networks. Consequently, each XAUT0 represents a portion of a troy ounce of physical gold securely stored in audited vaults.
Currently, over 7,300 XAUT0 tokens are in circulation, with more than $25 billion processed in total bridge volume, as reported by Everdawn Labs.
“Gold-backed tokens are rapidly becoming the fastest-growing segment of tokenized assets,” stated Alex Tapscott, CEO of CMCC Global Capital Markets.
He mentioned that daily trading in tokenized gold now exceeds $600 million, reflecting strong demand for physical bullion.
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Rising Prices and Growing Market Share
Experts assert that tokenized gold connects traditional finance with digital liquidity. Unlike physical bars, these tokens settle instantly and are compatible with decentralized finance platforms.
“Gold has a 5,000-year history as a reliable store of value,” remarked Alex Melikhov, co-founder of BrettonWoods Labs. “Tokenization provides that dependability in a verifiable digital form.”
PAX Gold (PAXG)—trading at around $4,413—has increased over 65% year-on-year, while Tether Gold (XAUT)—valued near $4,360—has risen by 63%. Their combined market capitalization is approaching $3.0 billion, illustrating how physical stores of value are migrating onto blockchains.
Furthermore, the average daily trading volume for PAXG has doubled over the past year, exceeding $300 million, according to CoinGecko data. Analysts attribute this trend to institutional investments from funds and family offices seeking digital exposure to gold.
Regulators are gradually becoming more amenable to tokenization. US SEC Chair Paul Atkins recently stated, “If it can be tokenized, it should be tokenized,” emphasizing it as a crucial modernization objective.
Nevertheless, regulatory oversight and reserve transparency remain vital for fostering investor confidence.
