Tokenized Gold Market Nears $3B as Spot Gold Hits New Record – 30/9/2025
Gold’s rally continued Monday, with spot prices climbing past $3,800 per ounce, setting a fresh all-time high and pushing bullion gains to nearly 47% year-to-date.
The surge is mirrored in the tokenized gold market, where Tether’s XAUT and Paxos’ PAXG hit record monthly trading volumes in September. Together, the two tokens now boast a market capitalization of $2.88 billion, with XAUT around $1.43 billion and PAXG roughly $1.12 billion.
Both tokens are backed by physical gold but settle on blockchain networks, enabling 24/7 trading and near-instant transfers. Liquidity is surging alongside prices: PAXG recorded over $40 million in net inflows and $3.2 billion in monthly trading volume, while XAUT saw $3.25 billion in monthly turnover, driven entirely by the rising price of gold rather than new token issuance.
Supportive macro conditions—including expectations of further Federal Reserve rate cuts, a softer U.S. dollar, and concerns over a possible U.S. government shutdown—are keeping investor demand strong. Meanwhile, Bitcoin, often called “digital gold,” lags with a 22% year-to-date gain.
