Gold-backed tokens reached a significant milestone this week, exceeding $1 billion in daily trading volume for the first time amid the yellow metal’s record-breaking surge.
Since the onset of the shutdown on October 1, the trading volume of tokenized gold products has surpassed $10 billion, outpacing BlackRock’s iShares Gold Trust (IAU), the world’s second-largest gold ETF, according to a recent report by CEX.IO.
During the same period, gold prices soared over 10% in October, exceeding $4,300 per ounce as the U.S.-China trade tensions, a federal government shutdown, and indicators of credit and liquidity stress in the financial system drove investors to this traditional safe-haven asset.
, a crypto token backed by physical gold, accounted for 37% of all tokenized gold volume this month, increasing from a 27% share in the previous quarter, according to data shared by CEX.IO. Its holder count also rose by over 12%, surpassing competitors like Paxos Gold (PAXG), the report indicated.
Nevertheless, traditional ETFs still dominate in total market size: the tokenized gold sector’s $3.3 billion market capitalization is small compared to SPDR Gold Shares (GLD) ETF’s $141 billion and IAU’s $62 billion in assets under management.
However, tokenized gold excels in trading velocity. Its volume-to-market-cap ratio stands at 34%, compared to GLD’s 5.6% and IAU’s 1.5%.
This trading speed suggests that investors are engaging with tokenized gold much more rapidly than with traditional gold instruments, with traders utilizing the crypto tokens for continuous adjustments and hedging against market risks, the report noted.
“[This] showcases how tokenized gold is not just a store of value but also functions as an active utility asset within the crypto ecosystem,” research analyst Illya Otychenko explained in the report. “Investors seem attracted by its accessibility and responsiveness to macroeconomic shocks, including tariff uncertainties and geopolitical tensions.”
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