Tokenised gold nears $2 billion amid tariff-driven demand

The market capitalisation of tokenised gold surged to nearly $2 billion on Thursday, driven by rising physical gold prices and growing investor interest in safe-haven assets amid tariff uncertainties.

According to CoinGecko data, gold-backed tokens such as Paxos Gold (PAXG) and Tether Gold (XAUT) have seen significant trading activity, with weekly volumes increasing by 900% and 300%, respectively, since President Trump’s inauguration on January 20.

The rally coincided with physical gold briefly reaching a record high of $3,170 per ounce, reflecting heightened demand during periods of geopolitical tension and inflation concerns.

A report by digital asset platform CEX.IO noted that tokenised gold has outperformed most crypto sectors in market cap growth since January, rising 21%, compared to an 8% gain for stablecoins and a 19% decline for Bitcoin.

“Tokenized gold is emerging as one of the key diversification strategies among crypto-native users,” said Alexandr Kerya, VP of product management at CEX.IO.

He added that it provides a stable approach to portfolio management while allowing users to remain within the crypto ecosystem.

The broader real-world asset (RWA) trend has also contributed to the adoption of tokenised gold, making exposure to the precious metal more accessible for investors who may not have considered it before.

Despite its strong performance, tokenised gold was not immune to market-wide volatility triggered by U.S. tariffs. Prices briefly fell 6% before recovering to record highs.