As the price of gold approaches its April peak, the market for crypto tokens backed by this precious metal has surged to new all-time highs.
The overall market capitalization of tokenized gold has exceeded $2.57 billion, as the leading tokens, Tether’s XAUT and Paxos’ PAXG, have received significant inflows recently. Both tokens are designed to track the price of gold and are backed by physical bars stored in vaults.
XAUT, issued by the company behind the USDT stablecoin, witnessed a supply increase of $437 million, reaching a record $1.3 billion. RialCenter reports that Tether’s Treasury minted 129,000 tokens on the Ethereum network in early August.
PAXG, the gold-backed token from U.S.-based firm Paxos, grew to a record market size of $983 million, supported by $141.5 million in net inflows since June.
Gold is currently trading at around $3,470, just below the peak of April 22, reached during the tariff crisis.
This precious metal, widely viewed as a safe-haven asset during times of uncertainty, has been rebounding recently, influenced by a steepening U.S. Treasury yield curve.
Read more: Gold’s Rally Has a Big Catalyst, and It Could Help Bitcoin Too
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