Gold‑backed crypto tokens top $3B as metal hits record
On‑chain gold notched a milestone alongside the metal’s surge. The combined value of tokenized gold assets rose to about $3.04 billion, per CoinGecko, after spot bullion set a new all‑time high above $4,000 before easing. Trading picked up as well, with roughly $640 million changing hands in the past day across leading tokens.
PAX Gold (PAXG) and Tether Gold (XAUT) remained the dominant wrappers, each tracking near the day’s bullion peak. Kinesis Gold (KAU) and a handful of smaller issuers rounded out the cohort. Prices across the set mirrored moves in the underlying metal, which briefly printed $4,007/oz in early trading before slipping.
The surge occurred during a broader flight to perceived havens. Silver jumped past $48.50, its highest level since 2011. At the same time, equities didn’t blink: the S&P 500 edged to a fresh high around 6,753. Bitcoin also posted a new top near $126,200 before pulling back toward $123,200 on Tuesday.
One cross‑asset gauge tilted toward bullion. The bitcoin‑to‑gold ratio – how many ounces a single BTC buys – fell below 32, down from peaks above 40 late last year. The shift suggests gold has outpaced bitcoin in recent weeks even as both advanced.
Macro backdrop helped drive the flows. The U.S. government shutdown persisted, and investors revived the familiar “debasement trade” narrative that tends to boost non‑sovereign stores of value.
Digital assets, particularly bitcoin, are emerging as clear beneficiaries,said Javier Rodriguez‑Alarcón, CIO at XBTO and a former BlackRock and JPMorgan executive.
Tokenized bullion appears to be capturing a slice of that demand for on‑chain exposure to traditional hedges.
For crypto users, the appeal of tokenized gold is practical: 1:1 claims on vaulted bars with fast settlement on public blockchains and composability with DeFi. PAXG and XAUT dominate because they offer familiar custodial models and liquid venues; KAU and others serve regional or ecosystem niches. The drawdowns and rebounds track spot metal first, with spreads and liquidity conditions on exchanges shaping intraday chops.
The headline, for now, is scale. Crossing $3B puts tokenized bullion in the same rough size bracket as mid‑tier stablecoin projects – still small next to the broader stablecoin market, but large enough to matter for on‑chain collateral and settlement. If bullion volatility stays elevated, volumes in the gold‑pegged set typically follow, providing another bridge between traditional safe‑haven flows and crypto rails.
